Bitcoin (BTC) price has surged past $90,000 as investors reacted to President Trump's decision to delay imposing 25% tariffs

As reported by Reuters on Mar. 6, the move, which grants 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.

Bitcoin price has surged past $90,000 as investors reacted to President Donald Trump’s decision to delay imposing 25% tariffs on Canadian and Mexican auto imports.

The move, which grants a one-month exemption for U.S. automakers, eases concerns that the trade war could damage domestic manufacturing and put pressure on the dollar, increasing demand for risk assets like crypto. The decision comes after Trump met with executives from Ford, General Motors, and Stellantis to discuss the tariffs, which were set to take effect on March 10.

Investors see the delay as an indication that tariffs may not cause as much economic disruption as anticipated. However, the administration is still planning to impose tariffs of up to 100% on several types of French products in a separate dispute over a digital services tax.

Crypto traders reacted to the tariff news with a rally in Bitcoin, which rose as high as $91,588 by 08:15 ET (13:15 GMT). BTC price is now up about 5% over the last 24 hours, trading at $91,651.

The broader crypto market also saw gains, with the total crypto market cap now up 2% over the last 24 hours. Although it is still in the “Extreme Fear” zone, the Fear and Greed Index increased 5 points to 25, indicating that investors are still being cautious.

Crypto-related stocks also saw significant gains, with Coinbase (NASDAQ:COIN) stock price seeing gains of 4% and MicroStrategy (NASDAQ:MSTR) stock price 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.

However, despite the rally, open interest in Bitcoin futures is at its lowest level since October 2024, as previously reported by crypto.news, suggesting that traders are choosing to remain cautious.

Meanwhile, blockchain analytics firm Santiment has noted that Bitcoin’s network continues to expand, with a rise in smaller wallets over the past month. But there are also signs that some large holders have taken profits recently.

Smaller Bitcoin wallets are expanding massively. There are 50K more wallets on the network than there were a month ago. By size, there are:

37,390 MORE wallets holding less than 0.1 $BTC

12,754 MORE wallets holding 0.1-100 $BTC

and 10,000 MORE wallets holding 100-10,000 $BTC

This signals new users are joining and the network is heating up.

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.