Bitcoin Surges Past $90,000: A Closer Look at the Impact of Trump’s Tariff Delay

Introduction: The Volatile World of Bitcoin

Bitcoin, the world’s most popular cryptocurrency, has once again made headlines by crossing the $90,000 mark. This recent surge is attributed to a combination of factors, including a significant development in global trade policies. On March 5, 2025, Bitcoin rose by 3.7% over a 24-hour period, reaching just above $90,000, following news that Donald Trump had delayed tariffs on auto parts from Canada and Mexico[3]. This move not only eased investor worries but also contributed to a broader rebound in risk markets.

The Role of Trump’s Tariff Delay

The decision by the U.S. government to delay tariffs on auto parts from Canada and Mexico has had a ripple effect on global markets. This delay, coupled with other economic developments such as Germany’s plan to ease debt limits and China’s decision to increase its target budget deficit, has led to a rise in risk assets[3]. The U.S. dollar index, which often moves inversely to cryptocurrencies, dropped to its lowest level since early November, further supporting the price increase of Bitcoin[3].

Bitcoin’s Price Dynamics

Bitcoin’s price has been highly volatile in recent weeks. After breaking below the $90,000 support level, it faced significant selling pressure, leading to a drop of nearly 14% to around $78,200[1]. However, following Trump’s announcement regarding cryptocurrency reserves, Bitcoin experienced a brief surge of over 23%, reaching $96,700[1]. Despite this rebound, the cryptocurrency has faced ongoing bearish pressure, with its short and medium-term trends turning bearish[1].

Market Sentiment and Technical Analysis

Market analysts suggest that Bitcoin may be oversold, with its Relative Strength Index (RSI) indicating a potential for a rebound[2]. The RSI reading of 31.16 suggests that Bitcoin is nearing oversold territory, which could lead to a price increase if selling pressure eases[2]. However, the lack of significant accumulation by large holders, known as whales, could exacerbate downward pressure on Bitcoin’s price[2].

Fundamental Strengths

Despite the volatility, Bitcoin’s fundamentals remain strong. The Bitcoin Fundamental Index, which measures network health, has held up well during recent price swings, suggesting underlying strength[3]. This strength indicates that Bitcoin is unlikely to enter a bear market, providing a bullish outlook for the cryptocurrency[3].

Conclusion: A New Horizon for Bitcoin?

Summary and Outlook

Bitcoin’s recent surge past $90,000 highlights the cryptocurrency’s sensitivity to global economic news. The delay in tariffs by Donald Trump has contributed to this increase, alongside other positive economic indicators. While Bitcoin faces challenges from bearish trends and reduced whale activity, its strong fundamentals suggest resilience against a prolonged bear market. As the cryptocurrency market continues to evolve, investors will closely watch how these factors influence Bitcoin’s price in the coming months.

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Sources:
– Cointribune
– BeInCrypto
– CoinDesk
– Binance