Bitcoin (BTC) price bounced back to nearly $110,000 after a weekend slump triggered by U.S. President Donald Trump’s surprise tariff threats on European goods.

The threat had briefly dragged BTC down to $108,600 and triggered over $500 million in long liquidations across major cryptocurrencies.

However, Trump’s decision to push the tariff deadline to July 9 helped calm nerves, sending U.S. and European index futures higher and reviving risk appetite.

This benefitted Bitcoin, which had dropped to lows of $108,600 briefly on Saturday after Trump threatened to impose tariffs on European goods.

But the president later postponed the tariff deadline to July 9, easing macro fears and helping U.S. and European index futures to trade higher on Sunday.

The move also helped to stir up risk appetite, which benefitted Bitcoin and broader crypto markets.

At the same time, the threat had also triggered over $500 million in long liquidations across major cryptocurrencies.

But with Trump now pushing the tariff deadline to July 9, this helped to calm nerves somewhat.

This also helped to push up U.S. and European index futures, and stir up some more risk appetite.

But the good news for crypto traders didn’t end there.

After sliding on Friday, oil prices also managed to stabilize on Sunday.

At the same time, the threat of rising shipping costs also saw traders sell off traditional safe havens.

This saw both gold and U.S. Treasuries pull back from recent highs.

But on the other hand, traders are now watching closely for Friday’s PCE data, which could shape the Fed’s next move.

Plus, while oil prices are down, growing port congestion in Europe is spreading to Asia and the U.S., risking higher shipping costs and renewed inflation.

Overall though, crypto sentiment is showing strength, unlike tech stocks, which remain more cautious.

According to Singapore-based QCP Capital, the options market is flashing signs of a bullish turn.

The firm reported that 1,000 contracts for the September $130K BTC call were picked up, signaling a growing appetite for top-side exposure.

This comes as several factors are setting up a mid-term rally in Bitcoin.

Specifically, QCP highlighted consistent ETF inflows, improving regulatory clarity in the U.S., and fresh institutional demand.

One standout is Strategy’s recent $2.1 billion fundraise, which is expected to be directed toward further Bitcoin accumulation.

“With institutions piling into crypto and U.S. regulators clamping down on DeFi protocols offering unregistered securities, we anticipate a shift in focus to Bitcoin as the preeminent asset class for institutions to engage with in the crypto space,” QCP Capital stated.

However, despite the emerging strength in the crypto market, it remains highly sensitive to global policy shocks.

But the fact that Bitcoin managed to bounce back sharply suggests that there is underlying strength in the market.

Plus, with traders returning and institutions increasing their activity, the weekend wobble may just be setting up the next leg higher in the markets.