Bitcoin has continued its upward trajectory, surpassing the $90,000 mark after U.S. President Donald Trump decided to delay implementing a 25% tariff on Canadian and Mexican auto imports.
Market Reaction to Trump's Decision
According to Reuters, Trump's actions, including a one-month reprieve for U.S. automakers, eased concerns about the trade war's impact on domestic manufacturing. This has fueled demand for cryptocurrencies. The decision followed Trump's meetings with executives from Ford, General Motors, and Stellantis, and was interpreted by investors as a sign that tariffs may not significantly disrupt the economy.
Current Crypto Prices and Assets
Bitcoin (BTC) is currently trading at $91,651, up 5% over the last 24 hours, as reported by crypto.news. The broader crypto market also advanced, gaining 2%, even though the Fear and Greed Index remains in the 'Extreme Fear' zone. Meanwhile, the U.S. dollar index (DXY) fell to its lowest level since November, historically signaling bullish trends for Bitcoin.
Bitcoin's Prospects and Analyst Opinions
Despite the rally, open interest in Bitcoin futures is at its lowest level since October 2024. Blockchain analytics firm Santiment noted an increase in smaller wallets on the Bitcoin network, while large holders have recently taken profits. According to Santiment, a rebound in large Bitcoin holdings could indicate renewed confidence. Traders are also focusing on the Federal Reserve, with expectations of up to three rate cuts this year.
Amid changes in U.S. trade policy and anticipations regarding monetary policy, Bitcoin shows a positive trend, yet investors remain cautious.
