What to know:
- Donald Trump’s delay on tariffs for auto parts from Canada and Mexico, combined with Germany’s strategy to relax debt limits and China’s decision to heighten its budget deficit target, contributed to a rise in risk markets.
- Bitcoin’s price exceeded $90,000, alongside notable increases in bitcoin cash (BCH), Chainlink (LINK), and Aptos (APT).
- The U.S. dollar index fell to its lowest level since early November, potentially supporting crypto prices.
- Although there have been recent dips, Swissblock’s Bitcoin Fundamental Index suggests bullish shifts in market fundamentals, indicating an unlikely bear market.
In light of recent headlines, Donald Trump’s tariff delay offered reassurance to investors, with Bitcoin leading the crypto market’s upward trend.
The U.S. government confirmed a one-month delay on tariffs for auto parts from Canada and Mexico shortly after implementation. Germany’s plan to ease infrastructure spending budgets and China’s rise in target deficit have also buoyed risk markets.
BTC surged to approximately $90,000, reflecting a 3.7% increase over the last 24 hours. The majority of assets in the CoinDesk 20 Index gained, with BCH, LINK, and APT seeing double-digit increases.
Read more: Bitwise Files to Launch Aptos ETF
The tech-focused Nasdaq and S&P 500 also experienced gains of 1.2% and 1.5%, respectively. Crypto-related equities, including Coinbase (COIN), rose by 3.5%, while Strategy, the largest institutional investor in Bitcoin, advanced nearly 10%.
Recent trade tensions and geopolitical risks have dominated discussions, negatively impacting investor sentiment and exerting pressure on risk assets like U.S. stocks and digital currencies.
Joel Kruger, a market strategist at LMAX Group, pointed out that traditionally, such risks would push investors toward the U.S. dollar, leading to potential declines in crypto assets. However, this time, the U.S. dollar index has dropped significantly, showcasing a weak performance since early November.
“With Federal Reserve rate expectations tilting toward more cuts in 2025 and Bitcoin’s potential as a store of value, we foresee significant support for Bitcoin during downturns,” said Kruger.
Swissblock, a cryptocurrency analytics firm, has indicated that despite recent volatility, their Bitcoin Fundamental Index is resilient.
“Bitcoin’s fundamentals are approaching a bullish phase, demonstrating sustained improvements in liquidity and network growth,” Swissblock analysts conveyed in a Telegram update. “This strength implies that BTC is unlikely to enter a bear market.”
