Bitcoin's recovery, like that of other risk assets, from recent market volatility, which caused it to fall to a four-month low earlier this week, didn't last long.

Bitcoin's recent market performance has been emblematic of the tumultuous times impacting global financial markets, largely prompted by US President Donald Trump's tariff announcements and the threat of a government shutdown. These actions spooked markets, causing sell-offs across various asset classes, including cryptocurrencies. Despite a temporary relief rally last week, Bitcoin's trajectory shifted sideways, with tariffs and poor retail sales data exacerbating concerns over US economic growth. While other cryptocurrencies like XRP and Solana showed temporary gains, Bitcoin could not maintain its upward momentum and dipped again below $84,000 by Monday. The volatility in Bitcoin's price impacts not only Bitcoin ETFs but also long positions in the crypto derivatives market, reflecting a market wary of deeper economic contractions. This backdrop presents a politically charged environment as Trump's policies, especially his tariffs, are perceived as disruptive not only to the US but also to the global economic system. Market participants are reportedly viewing Trump's strategy as unproductive, contributing to economic uncertainty and a lack of confidence among investors. Crypto analysts suggest that external risks like a recession in the US could further challenge Bitcoin's valuation despite predictions of a sustained bull cycle until 2025. Critics argue that the crypto economy exhibits a 'circular' nature, where value circulates within its ecosystem without substantial grounding in real-world economic fundamentals. Overall, while Bitcoin has historically benefited from economic turmoil owing to its status as 'anti-crash insurance,' the current macroeconomic challenges, especially those triggered by US policies, pose a dilemma on whether Bitcoin thrives due to crises or in spite of them.