Bitcoin price rebounds, fear turns to hope—here are the reasons

After several days of turbulence that wiped out tens of billions of dollars in market value, the crypto market is finally showing signs of recovery. As Bitcoin climbs back above $115,000 and Ethereum breaks through $4,000, optimism is slowly returning.

This rebound is driven by a combination of economic diplomacy, geopolitical easing, and investor sentiment—as global market fear shifts to hope.

Why Bitcoin Price Is Rising

1. Easing Trade Tensions: China States No Intention for Trade War

Global sentiment improved sharply after China issued a statement clarifying that it does not seek a trade war with the United States. After President Trump earlier threatened 100% tariffs, Beijing emphasized that its rare earth export restrictions are “legal” but not an escalation—signaling a cooling rather than confrontation.

Trump told reporters that the U.S. and China “have a good understanding” and that there is “no need to panic,” softening the rhetoric that initially triggered the market crash.
These diplomatic shifts helped calm global investors and restored risk appetite—a positive boost for the crypto market, which relies on confidence rebuilding.

2. Geopolitical Easing: Hostage Release and Trump’s Visit to Israel

Under a new peace agreement, Israeli hostages were released in Gaza, boosting market confidence. President Trump, visiting Israel, spoke on the matter and confirmed that both sides “have agreed to the deal,” calling it a “stable breakthrough.”

This moment of geopolitical easing reduced global risk aversion and reignited optimism in financial markets. Traders typically view such peace progress as good news for risk assets, including cryptocurrencies. This news also increased trading volume on major exchanges, especially in BTC, ETH, and SOL.

3. Market Psychology: Bottom-Fishers Return After Panic Selling

Beyond macro and political factors, the recovery is largely attributed to the classic crypto cycle—panic, capitulation, and rebound.
After last week’s sharp correction, traders and institutional investors stepped in to buy the dip, taking advantage of discounted prices.

Total Market Cap (USD) - TradingView

This new wave of buying momentum helped Bitcoin stabilize above $115,000 and pushed major altcoins up by double digits within 24 hours. As fear fades, greed is gradually returning to the market—a pattern well known to crypto veterans.

Today’s Crypto Prices: Top Ten Cryptocurrency Performance

The recovery is not limited to Bitcoin. Most of the top ten cryptocurrencies recorded strong daily gains:

This broad strength confirms a comprehensive recovery, not just a Bitcoin-led rebound. Altcoins, especially Ethereum, BNB, and Cardano, are showing renewed speculative interest.

Hope Returns—But Risks Remain

Despite improved sentiment, the market remains fragile:

• US-China trade relations could still heat up.
• The Middle East peace agreement is still in its early stages.
• Macro uncertainty—including inflation and potential interest rate changes—could trigger volatility again.

Nevertheless, for now, hope is replacing fear, and the crypto market has regained its footing.