BTC and other cryptocurrencies spark after Trump’s softer approach to new tariffs

Trump's new tariffs impact on Cryptocurrencies:

Several other major digital currencies have seen gains, with Ethereum rising by 4%, XRP increasing by 2%, and Solana surging by 8%. 

Bitcoin’s price has risen by 3% in the last 24 hours following reports that the upcoming U.S. tariffs on its trading partners may not be as severe as initially expected. Over the weekend, Bitcoin climbed from $84,000 to $88,600 after news emerged that President Donald Trump might take a softer approach to tariffs. This development has reassured investors, leading to a positive reaction in both the crypto and stock markets.

Trump is set to announce new tariffs on April 2, targeting major U.S. trading partners such as Canada, China, and Mexico. Initially, he had indicated that he would introduce broad tariffs, including both reciprocal and sector-specific levies. However, anonymous White House officials have now suggested that only reciprocal tariffs will be announced, while the sector-specific ones may be left out. This shift in strategy has eased concerns about an impending trade war, which in turn has boosted market confidence.

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Despite these reports, the White House has not confirmed its final decision. A government official told that there is still a possibility that the sector-specific tariffs could be implemented as planned. Investors remain watchful, as any change in Trump's stance could lead to further volatility in the markets. Nonetheless, for now, the speculation that the U.S. will take a more moderate approach has given Bitcoin and other assets a much-needed lift.

Bitcoin is not the only cryptocurrency benefiting from the news. Several other major digital currencies have seen gains, with Ethereum rising by 4%, XRP increasing by 2%, and Solana surging by 8%. The stock market has also reacted positively, with both the Nasdaq and the S&P 500 gaining 2% in the past day. Experts believe that the market rally is largely driven by the reduction in economic uncertainty, as investors regain confidence in both traditional and digital assets.

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The crypto market has faced significant challenges since Trump took charge, largely due to his unpredictable tariff policies. His economic strategy has created uncertainty, making investors cautious about riskier assets like Bitcoin. The potential for higher tariffs has also raised fears of inflation, which has contributed to Bitcoin’s decline from its all-time high of $109,000 in January to as low as $78,000 this month. Concerns over a possible recession have further added to the market’s instability.

Despite the ongoing uncertainty, financial experts say that volatility in the crypto market is expected during major economic shifts. Colin Closser, an investor relations manager at Exodus, stated that it is normal for markets to react emotionally during times of economic change. As long as there is uncertainty surrounding Trump’s economic policies, Bitcoin and other assets are likely to experience sharp price movements. However, if the U.S. takes a more balanced approach to trade, investor confidence could continue to grow, supporting further market recovery.