Global cryptocurrency markets staged a dramatic—but short-lived—rebound Wednesday, as traders initially piled back into digital assets ahead of U.S. President Donald Trump’s State of the Union address, only to dial down optimism when the speech failed to deliver fresh signals for the sector.
A Morning Surge That Defied Recent Pressure
In early Asian trading, Bitcoin jumped more than 3%, marking its strongest intraday performance since mid-February. By early afternoon in Singapore, the world’s largest cryptocurrency was still holding gains of over 2%, hovering near $65,500.
The rebound spread quickly across the broader digital-asset market:
Ether climbed more than 2.5%, after briefly surging nearly 5%.
Solana rose as much as 5.48%.
XRP advanced roughly 3.5% before trimming gains.
The synchronized move suggested a classic “risk-on” wave, with traders snapping up assets that had been under sustained selling pressure earlier in the week.
Dip Buyers Step In — But Conviction Remains Fragile
Market participants pointed to tactical buying rather than a shift in long-term sentiment.
Caroline Mauron, co-founder of Orbit Markets, said the rally appeared to be driven largely by opportunistic investors.
“The move higher likely reflects some dip-buying behavior after the extended selloff.”
She added that a decisive push toward $70,000 would be needed to meaningfully change the market narrative—an indication that traders still see the current rebound as corrective rather than transformational.
Policy Whiplash Still Haunts the Market
Crypto’s volatility this week has been tightly linked to political and legal developments in Washington.
Earlier declines followed a U.S. Supreme Court decision that invalidated the administration’s attempt to use emergency powers to implement so-called reciprocal tariffs—a cornerstone of Trump’s trade strategy. The ruling injected uncertainty into global macro expectations just days after the president announced plans for 15% global tariffs under an alternative authority.
That policy turbulence rippled across equities and digital assets alike, reinforcing crypto’s increasing sensitivity to macroeconomic signals.
The Speech Heard Around Markets—But Not Crypto
Traders had speculated that Trump, previously viewed as relatively supportive of digital assets, might address blockchain innovation or regulatory clarity during the State of the Union.
He didn’t.
As the speech unfolded without any mention of cryptocurrencies, momentum in digital assets began to fade almost immediately—an illustration of how sentiment-driven the current cycle remains.
Options Market Signals Defensive Positioning
Despite the day’s rebound, derivatives data reveals a cautious undertone beneath the surface.
Roughly $230 million in put options—contracts that profit if prices fall—were clustered around the $58,000 level ahead of March 6 expiry on Deribit, indicating traders are actively hedging downside risk.
Sean McNulty, Asia-Pacific derivatives lead at FalconX, linked that defensive posture to rising geopolitical anxiety.
“The massive put buying… reflects concerns over a U.S. strike on Iran.”
Prediction markets on Polymarket have priced in notable probabilities of escalation in the coming weeks—another reminder that crypto is trading less like an isolated tech bet and more like a macro-sensitive asset class.
A Market Caught Between Momentum and Macro Risk
The day’s price action tells a familiar 2026 story:
Crypto wants to rally—but macro uncertainty keeps pulling it back.
Investors are balancing three competing forces:
Technical rebound after February’s extended selloff.
Policy uncertainty tied to trade decisions and legal constraints.
Geopolitical risk hedging visible in derivatives positioning.
Until one of those forces clearly wins, analysts expect choppy conditions to dominate.
✅ Bottom Line:
Bitcoin’s bounce shows buyers are still waiting in the wings—but without clearer policy direction or easing geopolitical tension, rallies may continue to fade as quickly as they appear.