Key Points
- Bitcoin’s price surpasses $90,000 following President Trump’s decision to postpone imposing 25% tariffs on Canadian and Mexican auto imports.
- Crypto-related stocks, such as Coinbase and MicroStrategy, also experience significant gains.
The price of Bitcoin has skyrocketed beyond $90,000. This surge in value comes as investors react to President Donald Trump’s decision to postpone implementing 25% tariffs on auto imports from Canada and Mexico.
Tariff Delay Fuels Bitcoin Surge
As reported by Reuters, this move gives a one-month exemption for U.S. automakers. The decision has alleviated worries that the trade war could negatively impact domestic manufacturing and has put pressure on the dollar. This has led to an increased demand for risk assets like cryptocurrencies.
The decision to delay the tariffs followed a meeting between Trump and executives from Ford, General Motors, and Stellantis. Investors view this postponement as a sign that tariffs may not cause as much economic disruption as initially feared.
Bitcoin and Crypto Market Respond
Bitcoin is currently trading at $91,651, a 5% increase over the last 24 hours. The wider crypto market has also seen advancement, gaining 2% amid improved risk sentiment. Despite still being in the “Extreme Fear” zone, the Fear and Greed Index has risen 5 points to 25, indicating a continued caution among investors.
Crypto-related stocks have also seen substantial gains. Coinbase has risen by 4%, and MicroStrategy has seen a 12% increase. Concurrently, the U.S. dollar index fell to its lowest level since November, which is historically a bullish signal for Bitcoin.
Despite this rally, the open interest in Bitcoin futures is at its lowest level since October 2024. This suggests that traders are still choosing to remain cautious. Blockchain analytics firm Santiment has noted that Bitcoin’s network continues to expand with an increase in smaller wallets over the past month. However, there are indications that some large holders have recently taken profits.
Santiment analysts suggest a rebound in large Bitcoin holdings could signify renewed confidence and signal a potential breakout. Currently, traders are focused on Federal Reserve policy. Futures markets are now pricing in up to three rate cuts this year, compared to previous expectations of just one. The next significant move for Bitcoin could depend on whether the Fed follows through.
