Bitcoin Recovers 10% as Trump Eases Tariff Stance

Bitcoin (BTC) may be attempting to form a local bottom as US President Donald Trump is expected to soften his stance on reciprocal tariffs, which are set to go into effect on April 2. This shift in policy could alleviate some concerns about further deterioration in the global macroeconomic outlook, which has been a significant factor in the recent volatility of the cryptocurrency market.

Bitcoin’s plunge to $77,000 on March 10 may have marked the bottom for the top cryptocurrency in the current market cycle. Since then, the digital asset has appreciated by more than 10%, trading in the mid $80,000 range. This recovery aligns with the recent pivot by Trump toward “flexibility” on the upcoming April 2 reciprocal trade tariffs, which has provided some relief to investors.

The US Federal Reserve’s (Fed) comments following this month’s Federal Open Market Committee (FOMC) meeting also played a role in this recovery. The central bank indicated that it would slow the pace of balance sheet drawdown and end the current cycle of quantitative tightening. This decision followed the release of the February 2025 Consumer Price Index (CPI) inflation data, which came in line with expectations, easing concerns about inflation.

Crypto entrepreneur Arthur Hayes recently noted that BTC may have “probably” bottomed at $77,000. This sentiment is supported by a bullish reversal in BTC’s 21-day moving average, which currently sits at $85,200. These weekly reversal signs are back at levels typically seen when past bull markets have resumed, indicating a potential for further price appreciation.

Historically, BTC has benefited from bullish momentum during significant events. For example, in September 2023, BTC benefited from bullish momentum as the Bitcoin exchange-traded funds (ETF) narrative gained traction. Similarly, BTC embarked on a historic rally in August 2024 as the US presidential election drew closer. These events highlight the potential for BTC to regain strong bullish momentum if it can break through and sustain certain price levels.

While Trump’s softening stance on tariffs is good news for risk-on assets like cryptocurrencies, BTC still needs to break through and sustain certain price levels to regain strong bullish momentum. Recent analysis identified $94,000 as a critical price level for BTC to overcome. If the digital asset decisively breaks through and sustains this level, it could be poised to climb as high as $112,000.

However, concerns remain about BTC’s relatively weak price performance compared to other safe-haven assets like gold. At the time of writing, BTC is trading at $87,650, up 3.6% in the past 24 hours. This price performance, while positive, still lags behind other safe-haven assets, indicating that BTC may need to overcome additional hurdles before it can regain its status as a leading safe-haven asset.