Bitcoin Surges Amid Tariff Relief Hopes and Crypto Market Shifts

Bitcoin Rises on Tariff Relief Hopes

Bitcoin climbed 1.1% to $85,478.1 on Tuesday, driven by optimism over potential tariff relief. US President Donald Trump suggested exemptions from 25% tariffs on foreign vehicle imports, benefiting key trade partners like Mexico and Canada. This signals a more selective approach to tariffs, easing some market concerns.

US-China Trade Tensions Persist

Despite the softer tone, trade tensions between the US and China remain high. Tariffs of up to 145% on certain Chinese goods and a 125% levy on US goods by Beijing continue to weigh on global trade sentiment. Investors remain cautious as the broader trade policy outlook stays uncertain.

Trump Administration Considers Strategic Crypto Reserve

Reports indicate the Trump administration may use tariff revenue to purchase Bitcoin, aiming to bolster reserves without increasing debt or taxes. This follows an executive order to build a strategic crypto reserve, potentially signaling a shift in government attitudes toward digital assets.

Altcoins Show Mixed Performance

Altcoins saw mixed movements amid economic uncertainty. Ether rose 0.9% to $1,638.57, while XRP gained 0.8% to $2.1378. Solana dipped 0.7%, and Dogecoin dropped 3.3%. Meme token $TRUMP also fell 3.8%.

Market Outlook Remains Volatile

The crypto market remains on edge as trade policy developments and geopolitical tensions evolve. While short-term relief from tariff exemptions is welcome, the longer-term outlook for global trade and crypto markets remains uncertain.