Bitcoin Breaks $90K Barrier Following Trump’s Decision to Delay Auto Tariffs

Bitcoin Tops $90K as Trump’s Tariff Delay Sparks Market Optimism

Bitcoin surged past $90,000 on Wednesday after President Donald Trump postponed auto tariffs on imports from Canada and Mexico, providing relief to investors and fueling a market-wide rebound.

The U.S. administration announced a one-month delay on the tariffs just a day after their initial implementation, calming concerns over escalating trade tensions. Meanwhile, additional market tailwinds came from Germany’s move to ease debt constraints for infrastructure spending and China’s decision to raise its deficit target.

BTC gained 3.7% in the past 24 hours, leading the broader crypto market higher. The CoinDesk 20 Index showed strong performances across digital assets, with bitcoin cash (BCH), Chainlink (LINK), and Aptos (APT) posting double-digit increases.

Traditional financial markets mirrored the upswing, as the Nasdaq climbed 1.2% and the S&P 500 rose 1.5% during afternoon trading. Crypto-related equities also rallied, with Coinbase (COIN) gaining 3.5% and MicroStrategy (MSTR) jumping nearly 10%.

Investor sentiment had been weighed down by geopolitical risks and trade tensions, which typically push capital into the U.S. dollar at the expense of risk assets. However, the dollar index (DXY) slipped to its lowest level since November, down over 5% from its January peak, creating a more favorable environment for bitcoin.

“With the Federal Reserve now expected to cut rates more aggressively in 2025 and bitcoin’s store-of-value narrative strengthening, we see continued upside potential,” said Joel Kruger, market strategist at LMAX Group.

Despite recent volatility, Swissblock analysts highlighted that bitcoin’s underlying fundamentals remain resilient.

“Liquidity and network activity continue to improve, suggesting BTC is gearing up for a prolonged bullish cycle,” Swissblock wrote in a Telegram update.

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