Why Crypto Market Is Up Today: Bitcoin, Altcoins Recover from Trump’s Tariff Shock

Trump’s proposed tariffs initially hit the market harder than the SEC’s regulations, pushing Bitcoin down to $80,000. But now, the tides are shifting. Fresh reports suggest that the tariffs set to take effect on April 2 might not be as severe as feared, sparking a strong rebound in both stocks and crypto.

Bitcoin, XRP, and Solana kicked off the week with solid gains as investor sentiment improved. With key economic events on the horizon and Trump’s policies still unfolding, the next few days could be crucial for the market.

Crypto Market Sentiment Improves

Following the news, Bitcoin climbed 2.7% in the last 24 hours, trading around $86,500. Solana (SOL) led the gains with a 6% jump to $138, while XRP rose 2.5% to $2.44, staying above its 50-day moving average after two weeks of steady growth. Stocks also reacted positively – the S&P 500 and Nasdaq gained 0.5%, while the VIX, Wall Street’s “fear index,” dropped 2.5%.

Tariff Panic Fades as More Details Emerge

Markets had fallen sharply earlier due to concerns over Trump’s tariff plan, with Bitcoin plunging 17.6% in February. However, new reports suggest the tariffs may not be as broad as feared. Some countries could be exempt, and extra taxes on steel and other metals may not stack up as much as initially thought. This has calmed investors, leading to a more optimistic outlook.

Fed’s Outlook Boosts Confidence

The Federal Reserve recently updated its inflation forecast but confirmed it still plans to cut interest rates twice this year. The Fed also downplayed fears that tariffs would cause lasting inflation, calling the effects temporary. This has reassured investors and strengthened demand for riskier assets like Bitcoin.

BitMEX co-founder Arthur Hayes predicts Bitcoin will surge to $110,000 before dropping back to $76,500. He believes the Fed’s shift from tight monetary policy to easing will keep the crypto market strong despite inflation worries.

Debate Over Trump’s Tariff Strategy

While the market has reacted positively to the softened tariff outlook, some analysts warn that unexpected changes or a tougher stance from Trump could still shake things up.

Prominent crypto critic Peter Schiff has slammed Trump’s “Liberation Day” tariff plan. He argues that instead of restoring America’s wealth, the tariffs will expose how dependent the U.S. is on global trade and savings. He suggests that these policies could reveal economic weaknesses rather than fix them.

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Key Events to Watch This Week

Investors are closely watching two major events that could impact the market:

• March 27: The Senate Banking Committee will question SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould. Their views could hint at upcoming regulatory changes.
• March 29: The Fed’s key inflation report, the Personal Consumption Expenditures (PCE) index, will provide insights into future monetary policy.

With tariff concerns easing and the Fed sticking to its plans, the crypto market is recovering. If sentiment remains positive, Bitcoin and other cryptocurrencies could see further gains in the near future.

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