Bitcoin’s price has surged past $90,000 as investors reacted to President Donald Trump’s decision to delay imposing 25% tariffs on Canadian and Mexican auto imports. The move has eased market concerns and fueled demand for risk assets, boosting the broader cryptocurrency market.
Market Reacts to Tariff Delay
As reported by Reuters on March 6, Trump’s decision grants a one-month exemption for U.S. automakers, alleviating fears that aggressive trade policies could harm domestic manufacturing. The announcement followed a meeting between Trump and top executives from Ford, General Motors, and Stellantis, with White House press secretary Karoline Leavitt confirming that the delay aims to provide flexibility for the industry.
Investor sentiment improved as the delay suggested that tariffs might not create as much economic disruption as previously expected. The dollar weakened, pushing traders toward alternative assets such as Bitcoin.
Bitcoin and Crypto Market Performance
According to crypto.news price tracker, Bitcoin is currently trading at $91,651, reflecting a 5% increase in the last 24 hours. The overall cryptocurrency market also gained 2%, as risk sentiment improved. While the Fear and Greed Index remains in the “Extreme Fear” zone, it has risen by five points to 25, signaling cautious optimism among investors.
Crypto-related stocks experienced notable gains, with Coinbase (COIN) climbing 4% and MicroStrategy (MSTR) surging 12%. Meanwhile, the U.S. dollar index (DXY) dropped to its lowest level since November, a historically bullish signal for Bitcoin.
Cautious Trading Despite Price Rally
Despite Bitcoin’s price surge, open interest in Bitcoin futures remains at its lowest level since October 2024, suggesting that traders are hesitant to fully commit. This aligns with previous reports from crypto.news on March 5, indicating ongoing caution in the market.
Blockchain analytics firm Santiment highlighted continued expansion in Bitcoin’s network, noting an increase in smaller wallets over the past month. Data shows that:
- 37,390 additional wallets now hold less than 0.1 BTC.
- 12,754 more wallets are holding between 0.1 and 100 BTC.
However, some large holders have reportedly taken profits recently, leading analysts to suggest that a rebound in large Bitcoin holdings could signal renewed confidence and a potential breakout.
Looking Ahead: Federal Reserve Policy in Focus
With traders closely watching Federal Reserve policy decisions, Bitcoin’s next significant movement may depend on future interest rate adjustments. According to the CME FedWatch Tool, futures markets are now pricing in up to three rate cuts this year, compared to prior expectations of just one.
For now, Bitcoin remains in a volatile range, with investors monitoring macroeconomic trends and regulatory developments that could shape the market’s direction in the coming months.
