US President Donald Trump Has Stopped Planned Reciprocal Tariff Increases for 90 Days

Financial markets showed signs of recovering after a move that brought a sense of calm to the markets. The announcement also resulted in a rebound of Bitcoin

US President Donald Trump’s move to defer planned reciprocal tariff increases for 90 days has brought a sense of calm to the markets, with financial markets showing signs of recovery in response.

The announcement also resulted in a rebound of Bitcoin, which had retreated to $74,000 with the latest round of tariff concerns.

A temporary reprieve from trade tensions that had rattled global markets is the pause in those tariff hikes.

The announcement helped alleviate worries that economic slowdowns will take a further toll. The games also provided traders time to reconsider their strategies in the face of modifications to international trade policies.

Bitwise CIO Predicts Bitcoin Strength Amid Weaker Dollar

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believes that the tariff decision could support a rise in Bitcoin’s price in both the short and long term.

In a letter to investors, Hougan pointed to a recent statement from Steve Miran, Chairman of the White House Council of Economic Advisors, who said the U.S. dollar’s reserve status has created trade deficits and weakened domestic manufacturing.

“Trump may be open to reducing the dollar’s dominance,” and this could shift global demand toward other forms of value storage as the dollar weakens. Bitcoin, which tends to move in the opposite direction of the U.S. Dollar Index (DXY), could gain traction among investors and institutions.

Bitcoin as an Alternative Reserve Asset

Miran’s statement suggests that the Biden administration is considering a weaker dollar policy to support domestic industry, which aligns with Trump’s agenda.

However, this could have implications for global markets as institutions and countries may prefer assets not tied to any single government in a more decentralized reserve system.

“We could be entering an era where there is no single hegemonic currency and instead a handful of assets serve as global settlement and reserve currencies,” Miran said.

This view aligns with earlier comments by BlackRock CEO Larry Fink, who noted in a stakeholder letter that Bitcoin could challenge the dollar’s leading role in international finance. Fink described the digital asset as a serious candidate for global relevance.

Bitcoin Price Trend Still Under Watch

Veteran trader Peter Brandt added to the current market discussion by sharing a chart pattern analysis.

On his X account, Brandt said the recent dip in Bitcoin is a retest of an inverse head and shoulders pattern completed in late 2024. This pattern often signals upward movement, but Brandt noted that the trend line has been tested multiple times since 2022.

“The only thing that makes me question the next move is that it broke the parabolic trend (which I'm not a fan of). But it broke it,” Brandt stated.

Despite not offering a direct price forecast, his past predictions have held weight in the crypto space, especially after correctly calling the all-time high in January when Bitcoin crossed $109,000.

The market continues to monitor both macroeconomic developments and technical signals to determine Bitcoin’s next direction.