Bitcoin Surges Past $90K as Trump Delays Auto Tariffs, Boosting Market Sentiment

In a surprising turn of events, Bitcoin has rebounded strongly, breaking through the $90,000 mark following President Donald Trump’s decision to delay imposing 25% tariffs on Canadian and Mexican auto imports. This development has not only impacted the cryptocurrency market but also signaled a potential shift in global economic dynamics.
The immediate market reaction was swift and positive. Bitcoin’s price surged to $91,651, representing a notable 5% increase over the past 24 hours. This upward movement was accompanied by a broader crypto market advance, with overall market sentiment gaining 2% and the Fear and Greed Index climbing 5 points to 25.
Trump’s strategic decision came after a high-profile meeting with executives from major automotive manufacturers including Ford, General Motors, and Stellantis. The one-month tariff exemption for U.S. automakers was interpreted by investors as a potential signal of reduced economic disruption, thereby improving risk appetite across various asset classes.
Crypto-related stocks also experienced significant gains in the wake of this announcement. Coinbase (COIN) saw a 4% increase, while MicroStrategy (MSTR) jumped an impressive 12%. Simultaneously, the U.S. dollar index (DXY) dropped to its lowest point since November, a historical indicator that often correlates positively with Bitcoin’s performance.
However, the market’s enthusiasm is tempered by underlying caution. Open interest in Bitcoin futures remains at its lowest level since October 2024, suggesting that traders are maintaining a conservative approach. Blockchain analytics firm Santiment has observed an interesting trend of expanding Bitcoin network activity, particularly among smaller wallet holders.
The future trajectory of Bitcoin remains closely tied to Federal Reserve policy. Current futures market predictions suggest up to three potential rate cuts this year, a significant shift from previous expectations. This monetary policy outlook could be a crucial determinant of Bitcoin’s next major price movement.
Santiment analysts have also highlighted an intriguing pattern of large Bitcoin holders’ behavior. While some have recently taken profits, there are indications that a potential rebound in large holdings could signal renewed market confidence and possibly trigger a significant breakout.
As the cryptocurrency market continues to evolve, investors and analysts alike are closely monitoring these macroeconomic signals. The interplay between geopolitical decisions, monetary policy, and digital asset markets remains complex and dynamic, offering both challenges and opportunities for market participants.