Bitcoin Price Movements and Tariff Updates

The price of Bitcoin touched $92,750 on Thursday but later slipped below $89,000 as U.S. President Donald Trump broadened the scope of tariff delays on Mexican goods and services.

Trump stated that he was postponing tariffs on vehicles and other goods included in the United States-Canada Agreement (USMCA).
“Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement” until April, Trump wrote on the social media platform Truth Social, adding that the decision was made “out of respect” for Mexican President Claudia Sheinbaum.

This announcement followed the administration’s decision to delay 25% tariffs on goods from Mexico and Canada, which had been imposed earlier in the week.

In an interview with CNBC, Commerce Secretary Howard Lutnick expressed his expectation that a separate deal with Canada could be reached as early as today. His comments came after the sweeping tariffs also targeted China, which prompted retaliatory measures.

Bitcoin remains below its Sunday peak of $94,800 and well off its record high of over $108,000 set in January. The digital asset rallied alongside Ethereum, Solana, XRP, and Cardano (ADA) following Trump’s renewed call for the establishment of a “strategic crypto reserve” containing these coins.

While Cardano fell 6% over the past day to $0.89, XRP rose 3.6% to $2.57, with Ethereum and Solana remaining steady at $2,200 and $144, respectively, according to data from cryptocurrency market provider CoinGecko.

As industry leaders prepare to meet during a White House summit on Friday, optimism is growing that Trump’s reserve could stabilize the volatile crypto market, according to Valentin Fournier, an analyst at the digital asset intelligence firm BRN.
“A clear and actionable roadmap would be a monumental bullish catalyst for the entire crypto market, potentially kickstarting the massive rally investors have been waiting for,” he stated.

The ongoing trade war has heavily impacted risk assets. Though tariffs initially raised inflation concerns, market participants are increasingly worried about the economy’s strength amid weak economic data.

For instance, the Federal Reserve Bank of Atlanta projected on Monday that the U.S. economy might contract at an annualized rate of 2.8% during the first quarter. Additionally, job cuts surged to their highest level in January since July 2020, according to Challenger, Gray & Christmas.

The CME FedWatch tool now indicates a higher likelihood of three interest rate cuts this year, up from one that was previously considered more probable, reflecting growing recession fears.