Bitcoin (BTC) price trades above $86,000 as markets give off risk-on vibes

Bitcoin (BTC), the largest digital asset by market value, traded at around $86,500, up 2.7% on a 24-hour basis

The next round of Trump tariffs due on April 2 could be more measured than initially expected and focused on fewer products, rendering the impact less impactful for the U.S. economy, media reports said over the weekend.

The planned "reciprocal tariffs" will exempt some countries and existing levies on steel and other metals will not be cumulative, Bloomberg reported on Sunday, citing people familiar with the matter.

This could bode well for the market sentiment that soured in February on threat of tariffs.

Futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq rose over 0.5% on Monday, while Wall Street's fear gauge, the VIX index, slipped 2.5% to 18.88 points. Markets in China reversed early losses.

At the same time, the world's largest digital asset Bitcoin (BTC) traded at around $86,500, up 2.7% over the past 24 hours, according to CoinDesk data.

Solana's SOL token traded nearly 6% higher at $138.

Payments-focused XRP was up 2.5% at $2.44, trading above its 50-day simple moving average (SMA) after two consecutive weeks of positive price action.

Trump's tariffs, imposed in response to what he views as unfair trade practices by China and other nations, have already had a significant impact on the market, particularly on the stock market.

The Federal Reserve acknowledged the inflationary effect of tariffs in February while also downgrading growth figures likely due to Trump's aggressive trade policies.

But the U.S. central bank called the tariffs-led inflationary impulse transitory while retaining forecasts for two rate cuts this year in a dovish move for risk assets, including cryptocurrencies.

The Fed action, coupled with prospects of ebbing tariffs, has sewed seeds of bullish in the market.

"I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause “transitory inflation”. JAYPOW told me so," BitMEX co-founder Arthur Hayes, who is now chief investment officer at Maelstrom, said on X, formerly Twitter.

The other key factors to watch out for in the coming days are Friday's PCE reading, the Fed's preferred inflation gauge, and the appearance of the SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould before the Senate Banking Committee on March 27.