Bitcoin Surpasses $90K Amid Trump’s Tariff Delay and Positive Market Trends
Bitcoin’s price surged past $90,000, aided by delays in U.S. auto tariffs and favorable global economic conditions. Analysts affirm robust fundamentals for Bitcoin, predicting a bullish trend. The broader cryptocurrency market also benefitted with significant gains across several assets, despite prior market volatility.
Bitcoin experienced a significant rise, surpassing the $90,000 threshold, primarily influenced by a delay in auto tariffs imposed by President Donald Trump on imports from Canada and Mexico. Additionally, Germany’s initiative to ease certain debt limits, alongside China’s increase in budget deficit targets, fostered an environment of heightened market optimism and risk appetite.
Amidst this backdrop, Bitcoin achieved a 3.7% gain within a 24-hour period, pushing its value above the $90,000 mark. Other cryptocurrencies, such as Bitcoin Cash (BCH), Chainlink (LINK), and Aptos (APT), also recorded substantial double-digit percentage increases. Moreover, the U.S. dollar index declined to its lowest point since early November, possibly contributing to the uplift in cryptocurrency valuations.
Despite recent market volatility, Swissblock analysts indicate that Bitcoin’s fundamentals remain robust. Their Bitcoin Fundamental Index suggests a bullish trend is emerging, reducing the likelihood of a bear market. This sentiment was buoyed by the positive developments regarding tariff delays, which alleviated investor concerns and catalyzed a market rally led by Bitcoin.
As the U.S. government postponed the implementation of the tariffs on auto parts for one month, further gains were observed across the market. The Nasdaq and S&P 500 indices rose 1.2% and 1.5%, respectively, while cryptocurrency stocks also reflected this upward momentum. Notably, Coinbase’s stock increased by 3.5%, and Strategy, a prominent corporate Bitcoin holder, saw gains approaching 10%.
Market strategist Joel Kruger emphasized that the recent decline in the U.S. dollar index (DXY), now over 5% lower from its mid-January peak, deviates from typical risk-off behavior where investors tend to pivot to the dollar, posing risk to cryptocurrencies. He noted the shift in Federal Reserve rate expectations towards potential cuts in 2025, reinforcing Bitcoin’s status as a viable store of value, suggesting inherent support for BTC even amidst market dips.
In conclusion, Bitcoin’s rise to over $90,000 is attributed to President Trump’s tariff delay on imports from Canada and Mexico, coupled with favorable developments in global markets. Swissblock’s analysis indicates strong foundational health for Bitcoin, forecasting a bullish outlook. Despite previous volatility, the cryptocurrency market demonstrates resilience, leading to optimism and potential future gains, reinforced by declining U.S. dollar strength and shifting Federal Reserve expectations.
Original Source: www.coindesk.com
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