Bitcoin Surges on Trump's Tariff Delay, Coinbase Premium Hits 2025 High

Bitcoin's Coinbase Premium Soars to 2025 High as Trump Delays Tariffs on Canada and Mexico

Bitcoin's Coinbase Premium, a metric that measures the difference between the price of Bitcoin on Coinbase and other exchanges, surged to its highest level in 2025 as President Donald Trump announced a one-month delay in tariffs on Canada and Mexico. The move, which came amid ongoing negotiations, sparked a relief rally in cryptocurrency markets, with Bitcoin leading the charge.

The Coinbase Premium reached 0.5% on February 4, 2025, marking a significant increase from its previous high of 0.3% in early January. This metric is often seen as a bullish indicator, as it suggests that demand for Bitcoin is outstripping supply on Coinbase, one of the most popular exchanges for institutional investors.

The delay in tariffs, along with Trump's signing of an executive order to create a sovereign wealth fund, boosted market sentiment and led to a surge in Bitcoin's price. The largest cryptocurrency gained over $10,000 in a single daily candle, bouncing back from a low of $91,500 to reach a high of $101,500.

However, the rally was short-lived as news of China retaliating against US tariffs with its own measures targeting oil, coal, and other products emerged. This development led to a reversal in Bitcoin's price, with the cryptocurrency falling by around 3% to $98,199.

Despite the volatility, some analysts remain optimistic about Bitcoin's prospects. Michaël van de Poppe, a crypto trader and analyst, believes that the cryptocurrency is likely to reach new all-time highs in February, as long as it remains above $93,000.

Moreover, funding rates across derivatives markets have been printing bullish signals, with the Bitcoin Funding Rate turning negative for the seventh time this year. This indicator has historically signaled a bullish momentum for Bitcoin.

Meanwhile, the Relative Strength Index (RSI) on 4-hour timeframes also flashed a rare upside signal, further suggesting that Bitcoin may be poised for a rally.

In the broader market, the delay in tariffs has also led to a surge in interest from Asian investors