This week brought a fresh surge of headlines, with Donald Trump’s announcement to delay tariffs on Wednesday alleviating investor concerns, propelling bitcoin (BTC) to lead a rally in the crypto market.
On the heels of implementing new tariffs on auto parts from Canada and Mexico just a day earlier, the U.S. government confirmed a one-month delay. Germany’s initiative to relax debt limits for infrastructure investments, alongside China increasing its deficit target, also fueled the resurgence of risk assets.
Bitcoin surged past $90,000 following the news, marking a 3.7% increase over the last 24 hours. Nearly all assets within the comprehensive CoinDesk 20 Index saw gains, with notable double-digit rises in bitcoin cash (BCH), Chainlink (LINK), and Aptos (APT).
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The tech-heavy Nasdaq and the broader S&P 500 experienced gains of 1.2% and 1.5%, respectively, by afternoon trading. Stocks related to cryptocurrency also rebounded from earlier lows, with Coinbase (COIN) rising by 3.5%, and the largest corporate bitcoin holder Strategy posting nearly a 10% gain.
In recent times, trade tensions and geopolitical risks have dominated the narrative, negatively impacting investor confidence and applying downward pressure on risk-sensitive assets such as U.S. stocks and digital currencies.
Market strategist Joel Kruger from LMAX Group noted that previous instances of risk-off sentiment had typically led investors to seek safety in the U.S. dollar, adversely affecting crypto prices. However, this time the U.S. dollar index (DXY) plummeted to its lowest level since early November, down more than 5% from its peak in mid-January.
“With Fed rate expectations shifting toward more cuts in 2025 and bitcoin demonstrating potential as a store of value, we have ample reasons to anticipate solid support for bitcoin during price dips,” Kruger stated.
Crypto analytics firm Swissblock reported that despite the volatile price fluctuations observed recently, its Bitcoin Fundamental Index, which evaluates the overall network health, remained robust.
“The fundamentals of bitcoin are nearing a shift into bullish territory, marked by steady improvements in liquidity and network growth,” the analysts at Swissblock communicated via a Telegram broadcast. “This indicates that BTC is unlikely to be pushed into a bear market.”
