Bitcoin Surges Past $90K as U.S. Delays Tariffs
1min read Bitcoin surged past the $90,000 mark on Wednesday, as investors breathed a sigh of relief following the U.S. government's decision to delay tariffs on auto parts from Canada and Mexico. The delay, announced just a day after the tariffs were enacted, helped ease market concerns and contributed to a rebound in risk assets.
Bitcoin (BTC) climbed 3.7% over the past 24 hours, reaching just above $90,000. The broad-market CoinDesk 20 Index also saw almost all assets advance, with notable gains from bitcoin cash (BCH), Chainlink's LINK, and Aptos' APT. The tech-focused Nasdaq and the broad-market S&P 500 were up 1.2% and 1.5%, respectively, during the afternoon session. Crypto-related stocks, such as coinbase (COIN) and microstrategy, also climbed higher from their early-week lows.
Trade tensions and geopolitical risks have recently weighed on investor sentiment, pressuring risk assets like U.S. stocks and digital assets. However, this time, the U.S. dollar index (DXY) fell to its weakest level since early November and is down more than 5% from its mid-January peak. This decline in the dollar's strength may have contributed to the rebound in risk assets, including bitcoin.
Market strategist Joel Kruger from LMAX Group noted that the shift in Fed rate expectations, pricing more rate cuts than less in 2025, and bitcoin's potential as a store of value asset, suggest that bitcoin may be well-supported on dips. Crypto analytics firm Swissblock also reported that despite recent price swings, the Bitcoin Fundamental Index held up relatively well, indicating that bitcoin's fundamentals are on the verge of shifting into the bullish quadrant.
