Bitcoin rebounded on Wednesday, climbing 3.4% to $87,103.8, as traders took advantage of lower prices following a recent market downturn. The resurgence came amid speculation over U.S. trade policies and expectations surrounding upcoming regulatory developments.

The cryptocurrency market has been volatile over the past week. A sharp sell-off initially pushed Bitcoin below $80,000, driven by concerns over trade tariffs and regulatory uncertainty. However, dip-buying helped stabilize prices, leading to a modest recovery. A key factor in this turnaround was renewed investor optimism following comments from U.S. Commerce Secretary Howard Lutnick, who suggested that President Donald Trump might consider easing recently imposed tariffs on Canada and Mexico.

Trump's administration recently introduced a 25% tariff on Canadian and Mexican imports, leading to retaliatory measures from both countries. Despite Lutnick's remarks, Trump provided no confirmation of any tariff concessions during his address to Congress on Tuesday. Instead, he reinforced his commitment to a tariff-driven economic strategy, stating that further measures could be expected by early April.

Bitcoin experienced dramatic price swings as investors reacted to Trump’s recent announcement that five cryptocurrencies, including Bitcoin, would be incorporated into a proposed crypto reserve. The initial rally sparked by this announcement was short-lived, as Trump did not clarify key details, such as the reserve's structure or the extent of government funding allocated to purchasing crypto assets. As a result, investor sentiment remained mixed, contributing to Bitcoin’s volatile performance.

Despite these uncertainties, Bitcoin found support as traders stepped in to buy the dip, preventing further losses. The market now looks toward Trump's upcoming White House Crypto Summit on Friday, where investors hope to gain clearer insights into the administration’s stance on cryptocurrency regulations.

Altcoins also saw a recovery in line with Bitcoin's gains. Ethereum rose 3.8% to $2,175.47, while XRP climbed 4.3% to $2.4222. Other major tokens, such as SOL/USD and ADA/USD, gained 3.2% and 14%, respectively. Polygon also rose by 1.5%, while meme tokens like Dogecoin and $TRUMP increased 2.1% and 5%.

With investors closely watching trade policy developments and the upcoming Crypto Summit, market sentiment remains cautiously optimistic. Traders are now waiting for more policy clarity to determine the future direction of crypto markets.