As the US-Canada trade friction showed signs of improvement and the situation in Ukraine temporarily eased, Bitcoin prices rebounded strongly after experiencing violent fluctuations on Tuesday. At 4 p.m. New York time, the price of Bitcoin quickly climbed from its intraday low of below $80,000 to a high of $83,568, a single-day increase of 5.75%. This fluctuation coincided with the announcement by the Canadian province of Ontario to suspend the 25% surcharge on electricity exports to the United States, and the 30-day temporary ceasefire agreement reached between Ukraine and Russia under the mediation of Saudi Arabia. Multiple positive factors pushed the total market value of the crypto market back to US$2.7 trillion.
In the early trading session, former President Trump’s announcement of additional tariffs on Canadian steel and aluminum products caused market panic, and the price of Bitcoin came under pressure and fell below the psychological mark of $80,000. But trade policy uncertainty has significantly decreased as Ontario Premier Doug Ford announced the postponement of electricity tariff plans and plans to travel to Washington on March 13 to discuss revisions to the USMCA with the U.S. Secretary of Commerce. At the same time, the preliminary conclusion of a ceasefire agreement in Ukraine further boosted market confidence. The United States immediately announced the unfreezing of military intelligence support for Ukraine. The cooling of geopolitical risks became a key catalyst for the rebound in Bitcoin prices.
Judging from market data, while the price of Bitcoin regained the $83,000 mark, it also drove the overall cryptocurrency trading volume to increase by 7% in a single day to $148.16 billion. Ethereum also rose 4.45%, while Wall Street’s three major stock indexes reversed their decline in late trading. Analysts pointed out that the high sensitivity of Bitcoin prices to macroeconomic policies was once again highlighted in this fluctuation – when the US-Canada tariff deadlock showed signs of easing, a large amount of safe-haven funds quickly flowed back into crypto assets, driving Bitcoin prices to achieve a V-shaped reversal.
It is worth noting that the sustainability of this Bitcoin price rebound remains uncertain. Although Russia has not yet formally signed a ceasefire agreement and details of the US-Canada trade negotiations are still to be determined, short-term market sentiment has improved significantly. Data from some trading platforms showed that after the price of Bitcoin broke through $83,000, leveraged long positions increased by 23% compared with the previous day, indicating that investors remain optimistic about the short-term trend. Historical data shows that when geopolitical conflicts and trade policies improve simultaneously, Bitcoin prices tend to show excess returns. This 5.75% increase confirms this pattern.
As of press time, the price of Bitcoin remained fluctuating around $83,200, and the 24-hour trading volume increased by 18% compared with the previous day. As the April 2 deadline for US-Canada tariffs approaches and the specific implementation of the ceasefire agreement in Ukraine, market volatility may continue to increase. Most analysts believe that if the macro environment maintains the current trend of improvement, the price of Bitcoin is expected to test its historical high again, but we need to be wary of the risk of a pullback caused by policy fluctuations.
