Bitcoin surged 7.7% on Wednesday, trading just below $90,000, as investor optimism grew that President Donald Trump may soften the proposed 25% tariffs on Canada and Mexico.
Key Market Movements
- Bitcoin (BTC) jumped to $89,970, recovering from a recent dip below $82,000.
- Ethereum (ETH) rose 6.1%, climbing back above $2,200.
- The Dow Jones and S&P 500 both saw 1.2% and 1.5% declines, underscoring market uncertainty.
Trump’s Potential Trade Compromise
- Commerce Secretary Howard Lutnick told Fox News that Trump will “probably” announce a trade compromise with Canada and Mexico.
- This could reduce the severity of tariffs, easing economic strain on U.S. trading partners.
- However, Trump remains firm on China, maintaining a 20% tariff on Chinese imports.
Macroeconomic Risks: Bitcoin Still Linked to Equities
- BRN analyst Valentin Fournier warned that prolonged tariff tensions could lead to higher inflation and reduced economic growth.
- QCP Capital noted that crypto markets remain highly correlated with equities, responding to broader economic shifts.
- If tariffs persist, analysts say it could tighten liquidity, which may weigh on Bitcoin’s long-term price movement.
White House Crypto Summit on Friday: Market Catalyst or Non-Event?
- The White House’s first-ever Crypto Summit is set for March 7.
- Investors are in “wait-and-see” mode, looking for concrete executive orders or policy commitments.
- Without clear policy direction, the summit could either trigger a rally or expose crypto market fragility.
What’s Next?
- If Trump’s trade compromise materializes, Bitcoin and risk assets could rally further.
- If tariff tensions persist, economic headwinds may slow Bitcoin’s momentum.
- All eyes are on the White House Crypto Summit, as any major announcements could serve as a pivotal market moment.
For now, Bitcoin is riding a wave of optimism, but the next moves in U.S. trade policy and crypto regulation will determine if this rally has staying power.
Hidden Insight
While trade policy and Bitcoin may seem unrelated, BTC’s increasing correlation with macroeconomic events signals its growing role as a global financial asset. If Bitcoin continues reacting to economic policies like traditional markets, it could further cement its position as digital gold.