Bitcoin Rebounds as Trump Delays Tariffs
Bitcoin (BTC) led the crypto market rally, climbing above $90,000, following news that Donald Trump delayed auto part tariffs on Canada and Mexico for one month.
BTC surged 3.7% in 24 hours, boosting broader risk markets.
CoinDesk 20 Index showed gains across the board, with Bitcoin Cash (BCH), Chainlink (LINK), and Aptos (APT) posting double-digit increases.
Crypto stocks soared:
- Coinbase (COIN) gained 3.5%
- MicroStrategy (MSTR), the largest corporate Bitcoin holder, surged 10%
Market Sentiment Turns Positive
Investor risk appetite improved as:
Germany eased debt limits, allowing more infrastructure spending.
China raised its target deficit, signaling stimulus measures.
The U.S. dollar index (DXY) weakened, dropping 5% since mid-January, easing pressure on crypto assets.
“With Fed rate expectations shifting toward more rate cuts in 2025, Bitcoin is poised to perform well,” said Joel Kruger, market strategist at LMAX Group.
Bitcoin’s Fundamentals Remain Strong
Despite recent volatility, Bitcoin’s network health remains robust:
Swissblock’s Bitcoin Fundamental Index indicates strong liquidity and network growth.
Analysts believe BTC is unlikely to enter a bear market.
The store-of-value narrative is strengthening, with Bitcoin acting as a hedge against inflation and geopolitical risks.
What’s Next for Bitcoin?
Investors are eyeing key upcoming catalysts:
Federal Reserve’s policy updates – Any hint of interest rate cuts could push Bitcoin higher.
Trump’s crypto policies – The administration’s stance on crypto regulation and a potential national Bitcoin reserve may impact prices.
Halving event approaching – Historically, Bitcoin halvings drive bullish momentum.