Bitcoin recovery gains pace, briefly tops $85,000 on new trade hopes

Bitcoin briefly went above the $85,000 mark over the weekend, but slipped back below $84,000 by Sunday afternoon.

Tariff uncertainty had pushed the price of a Bitcoin below $75,000 a week ago.

Timo Emden of Germany's Emden Research attributed the gains to Washington's climbdown on some of the tariffs that sparked market turmoil this month.

On Saturday, the US government announced exemptions from special tariffs on smartphones, laptops and other key electronics from several countries, including China. Emden said the move has raised hopes that the trade conflict may have peaked.

"The US' continued retreat from its previous trade stance is fuelling optimism," he noted, adding that investors appear to be positioning for a potential breakthrough in the dispute in the coming days and weeks.

Emden also pointed to supportive monetary policy signals from the United States as another tailwind for crypto assets. On Thursday, data showed that inflationary pressures in the US had eased more than expected.

That development could pave the way for further declines in capital market interest rates — potentially boosting demand for non-interest-bearing assets such as Bitcoin.