Investing.com-- Bitcoin rebounded from recent losses on Tuesday amid some bargain buying at sub-$100,000 levels, although traders remained on edge over a renewed market rout on jitters over artificial intelligence.
Crypto markets were also focused squarely on U.S. President Donald Trump’s plans for more friendly regulation, after he signed a somewhat underwhelming executive order last week.
A memecoin launched by the President, $TRUMP , also appeared to have found a bottom after wiping out about 60% of its value from its post-launch peaks.
Bitcoin rose 2.7% to $103,036.4 by 00:56 ET (05:56 GMT). The world’s biggest cryptocurrency had slumped below the key $100,000 level on Monday, but had swiftly rebounded.
Crypto was pressured chiefly by steep losses in Wall Street, which spilled over into other risk-driven assets.
Major technology stocks, particularly NVIDIA Corporation (NASDAQ: NVDA ), were battered by questions over stretched spending on AI after the release of China’s DeepSeek R1- an AI model that appeared to have similar capabilities as ChatGPT while using older hardware and a fraction of the latter’s budget.
This rout triggered a risk-off move across global markets, which in turn spilled over into crypto.
U.S. stock index futures trended slightly lower in Asian trade on Tuesday, indicating that investors still remained on edge over further weakness in risk assets.
Risk appetite also remained weak after Trump threatened to impose universal trade tariffs. Earlier reports suggested that Treasury Secretary Scott Bessent will propose a more staggered approach to tariffs, starting with a 2.5% duty with gradual increases.
But Trump dismissed this notion, stating that he will call for tariffs much bigger than 2.5%.
On the subject of crypto policy, markets had taken little support from Trump signing an executive order calling for a crypto regulatory framework last week. Trump also mentioned plans for a strategic digital asset reserve, but did not provide details.
The biggest sticking point with Trump’s order was that he did not mention Bitcoin even once in the order.
Arizona lawmakers on Monday furthered a bill allowing the state to invest some public funds in Bitcoin. But the bill is a long ways from being approved, and has limited prospects, given that an earlier bill proposing to make Bitcoin legal tender saw little headway.
Broader crypto prices firmed on Tuesday, tracking gains in Bitcoin. World no.2 crypto Ether rose 2.2% to $3,209.99, while XRP rose 5.7% to $3.1040.
$TRUMP rebounded 12% to $29.898 after hitting a record low of $24.736 this week. The token has wiped out around 60% of its value after hitting a high of over $60 since its launch earlier this month.
Cardano , Solana , and Polygon rose between 0.2% to 5%, while among meme tokens, Dogecoin added 4.3%.