Bitcoin (BTC) and other major cryptocurrencies kicked off the week with solid gains as investors found relief in a more measured approach to United States trade tariffs. The softened stance, coupled with encouraging economic data, helped fuel a bullish turn in the market on Monday.
In the past 24 hours, BTC climbed 3.1% to hit $87,575, marking its highest level since early March. Ether (ETH) followed suit as whales accumulated over 120,000 ETH in three days, rising 3.5% to $2,085. Other notable gainers included XRP, which increased 3% to $2.46, and Solana (SOL), which jumped 7.8% to $143.
What’s Driving the Market?
For weeks, crypto and stock markets have been on edge following former U.S. President Donald Trump’s announcement of aggressive tariff measures. Investors feared that escalating trade tensions could dampen global economic growth and trigger volatility across financial markets, including crypto.
However, a Bloomberg report indicate that the White House is considering a more “targeted” tariff approach rather than broad, sweeping measures. This shift suggests a potential de-escalation of trade risks, helping to restore investor confidence in risk assets like BTC.
According to Vincent Liu, Chief Investment Officer at Kronos Research, the market’s bullish reaction comes as investors are encouraged by Trump’s softened tariff approach, set to take effect in April, alongside the Federal Reserve’s focus on inflation stability.
“The crypto markets are surging as investors respond positively to Trump’s more cooperative stance on tariffs, set to take effect on April 2, alongside the Fed’s focus on long-term inflation trends,” Liu noted.
Beyond the trade policy shift, recent U.S. economic data has further supported market sentiment.
Notably, the latest unemployment figures show only a minor uptick, with jobless claims rising by 2,000 to 223,000, according to Reuters. Likewise, U.S. inflation slowed to 2.8% in February as indicated by the consumer price index data.
Read also: 83% of Institutional Investors Plan to Increase Crypto Exposure in 2025, Study Shows
Will This Momentum Last?
While BTC’s surge past $87,000 is a positive sign, analysts caution that volatility may not be over yet. Crypto analyst Rachael Lucas points out that uncertainty around trade policy could still lead to market fluctuations.
According to The Block, She also warned that once the new tariffs go into effect next week, there could be an immediate market reaction. The long-term impact, however, depends on whether trade tensions escalate or cool down. If the U.S. dollar strengthens due to heightened trade risks, crypto assets could face short-term pressure.
However, if the market views the tariffs as part of a broader negotiation strategy, bitcoin and other cryptocurrencies could experience a fresh rally. For now, BTC’s latest surge indicates renewed optimism, but the coming weeks will determine whether this momentum is sustainable.
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