Bitcoin Surges Past $90K as Trump Delays Auto Tariffs

Bitcoin's price surged past the $90,000 mark on March 5, 2025, as investors reacted to President Donald Trump's decision to delay imposing 25% tariffs on Canadian and Mexican auto imports. The move, which granted a one-month exemption for U.S. automakers, eased concerns that the trade war could damage domestic manufacturing and weighed on the dollar, fueling demand for risk assets like crypto.

The decision came after Trump met with executives from Ford, General Motors, and Stellantis, according to White House press secretary Karoline Leavitt. Investors see the delay as an indication that tariffs may not cause as much economic disruption as anticipated. Bitcoin (BTC) is currently trading at $91,651, up 5% over the last 24 hours, with the broader crypto market gaining 2% amid improved risk sentiment.

Crypto-related stocks also saw significant gains, with Coinbase (COIN) rising 4% and MicroStrategy (MSTR) jumping 12%%. At the same time, the U.S. dollar index (DXY) fell to its lowest level since November, historically a bullish signal for Bitcoin. Despite the rally, open interest in Bitcoin futures is at its lowest level since October 2024, suggesting that traders are choosing to remain cautious.

Blockchain analytics firm Santiment noted that Bitcoin's network continues to expand, with a rise in smaller wallets over the past month. However, there are signs that some large holders have taken profits recently. Santiment analysts suggest that a rebound in large Bitcoin holdings could indicate renewed confidence and signal a potential breakout.

For now, traders remain focused on Federal Reserve policy. According to the CME FedWatch Tool, futures markets are now pricing in up to three rate cuts this year, compared to previous expectations of just one. Bitcoin's next major move could depend on whether the Fed follows through.