Bitcoin has shattered the $90,000 milestone, fueled by renewed investor optimism following President Donald Trump’s decision to postpone the implementation of 25% tariffs on Canadian and Mexican auto imports.
This move, which grants U.S. automakers a one-month reprieve, has eased concerns over potential economic disruptions from escalating trade tensions, Reuters.
The decision, announced by White House press secretary Karoline Leavitt, came after a meeting between Trump and executives from Ford, General Motors, and Stellantis.
The delay in tariffs has alleviated some of the economic uncertainty weighing on markets, leading to a weaker U.S. dollar. Historically, a declining dollar has been bullish for Bitcoin and other risk assets, as investors seek alternative stores of value.
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As a result, Bitcoin has gained significant momentum, currently trading at $91,651—a 5% increase in the past 24 hours, according to crypto.news.
The broader cryptocurrency market has also benefited from the improved sentiment, posting a collective 2% gain. However, despite the rally, market sentiment remains cautious. The Fear and Greed Index, though up by five points to 25, still signals “Extreme Fear.”
Bitcoin’s strong performance has had a ripple effect on crypto-related equities. Coinbase (COIN) saw a 4% rise, while MicroStrategy (MSTR), known for its substantial Bitcoin holdings, jumped an impressive 12%. Simultaneously, the U.S. dollar index (DXY) has dropped to its lowest level since November, reinforcing the bullish outlook for digital assets.
Despite Bitcoin’s impressive rally, open interest in Bitcoin futures has declined to its lowest level since October 2024, suggesting that traders are approaching the surge with caution. Market participants may be waiting for further confirmation of sustained bullish momentum before increasing their exposure.
Blockchain analytics firm Santiment has reported continued network growth, with an increase in smaller Bitcoin wallets over the past month.
However, there are indications that some large holders have been taking profits. Analysts suggest that a resurgence in large Bitcoin holdings could signal renewed confidence and pave the way for another breakout.
📈 Bitcoin has rebounded back above $90K as prices have been rollercoastering here in March. There are 50K more wallets on the network than there were a month ago. By size, there are:
— Santiment (@santimentfeed) March 5, 2025
🐟 37,390 MORE wallets holding less than 0.1 $BTC
🐬 12,754 MORE wallets holding 0.1 – 100 $BTC… pic.twitter.com/xClRIGa4Rj
Looking ahead, Bitcoin’s next major move will likely hinge on Federal Reserve policy. According to the CME FedWatch Tool, futures markets are now pricing in up to three interest rate cuts this year—an increase from previous expectations of just one. If the Fed follows through with these cuts, it could further boost Bitcoin’s appeal as an inflation hedge and store of value.
For now, investors are navigating a landscape marked by cautious optimism, watching both macroeconomic policy and market signals to gauge Bitcoin’s next direction.
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