Trump's tariff delay eases investor worries with bitcoin (BTC) leading the crypto market higher.

The U.S. government confirmed to delay tariffs on auto parts coming from Canada and Mexico by one month just one day after enacting them.

In a whirlwind of economic updates, Donald Trump's tariff deferral brought some respite to investor anxieties, spurring bitcoin (BTC) to new highs and leading the crypto market on Wednesday.

The U.S. government confirmed a one-month delay on tariffs for auto parts coming from Canada and Mexico, just a day after they were set to come into effect.

Germany's plan to ease debt limits for infrastructure spending and China's move to increase its target deficit for the year also contributed to a rebound in risk markets.

BTC rose to a peak of around $90,000, marking a 3.7% gain in the past 24 hours. A majority of assets in the broad-market CoinDesk 20 Index advanced, with bitcoin cash (BCH), Chainlink's LINK and Aptos' (APT) registering double-digit gains.

The tech-focused Nasdaq and the broad-market S&P 500 were also trading higher, with increases of 1.2% and 1.5%, respectively, in the afternoon hours of the session.

Crypto-related stocks also climbed higher from the early week lows. Crypto exchange Coinbase (COIN) was up 3.5%, while the largest corporate bitcoin holder Strategy is still up nearly 10%.

Markets have been grappling with trade tensions and geopolitical risk, which have taken a toll on investor sentiment, leading to pressure on risk assets such as U.S. stocks and digital assets.

These risk-off episodes have usually resulted in investors seeking refuge in the U.S. dollar, which typically translates to downside pressure on crypto assets, as noted by Joel Kruger, a market strategist at LMAX Group. However, in a surprising turn, the U.S. dollar index (DXY) cratered to its weakest level since early November and is now down more than 5% from its mid-January peak.

"With Fed rate expectations shifting back to pricing more rate cuts than less in 2025 and with bitcoin capable of shining as a store of value asset, we believe there are plenty of reasons to expect bitcoin to be well supported on dips," Kruger added.

Meanwhile, crypto analytics firm Swissblock observed that despite the significant price swings over the past few days, their Bitcoin Fundamental Index, which measures the overall health of the network, has held up relatively well.

"Bitcoin's fundamentals are on the verge of shifting into the bullish quadrant, with sustained improvements in liquidity and network growth," Swissblock analysts noted in a recent Telegram broadcast.

"This strength suggests that BTC is unlikely to be driven into a bear market despite the bear market narrative being pushed in the media and the crypto community."input: In the latest whipsaw of headlines this week, Donald Trump's tariff delay Wednesday eased investor worries, with bitcoin (BTC) leading the crypto market higher.

The U.S. government confirmed to delay tariffs on auto parts coming from Canada and Mexico by one month just one day after enacting them. Germany's plan to ease debt limits for infrastructure spending and China hiking its target deficit also contributed to rebounding risk markets.

BTC climbed just above $90,000, up 3.7% over the past 24 hours. Almost all assets in the broad-market CoinDesk 20 Index advanced, with bitcoin cash (BCH), Chainlink's LINK and Aptos' (APT) booking double-digit gains.

The tech-focused Nasdaq and the broad-market S&P 500 were also up 1.2% and 1.5%, respectively, in the afternoon hours of the session. Crypto-related stocks also climbed higher from the early week lows. Crypto exchange Coinbase (COIN) was up 3.5%, while the largest corporate bitcoin holder Strategy gained nearly 10%.

Markets have been grappling with trade tensions and geopolitical risk, which have taken center stage lately, pressuring investor sentiment and leading to declines in risk assets such as U.S. stocks and digital assets.

These risk-off episodes have usually led investors to flee to the U.S. dollar, translating to further downside pressure on crypto assets, said Joel Kruger, a market strategist at LMAX Group. However, this time the U.S. dollar index (DXY) cratered to its weakest level since early November and is now down more than 5% from its mid-January peak.

"With Fed rate expectations shifting back to pricing more rate cuts than less in 2025 and with bitcoin capable of shining as a store of value asset, we believe there are plenty of reasons to expect bitcoin to be well supported on dips," Kruger said.

Crypto analytics firm Swissblock noted that despite the wild price swings over the past few days, their Bitcoin Fundamental Index, which measures the overall health of the network, has held up relatively well.

"Bitcoin's fundamentals are on the verge of