Bitcoin Surges Past $88K on Positive Tariff News

Bitcoin enjoyed some natural, news-free price action over the weekend. However, as we’ve seen multiple times this year, tariff announcements have once again influenced the market—this time, in a positive way.

As I mentioned yesterday, reciprocal tariffs are set to begin on April 2nd, but Trump has proven himself to be, as he put it, "flexible." Overnight, he stated that he "may give a lot of countries breaks on tariffs." On top of that, the White House is no longer expected to impose sector-specific tariffs as initially planned. Instead, the focus has shifted to applying reciprocal levies on a targeted set of nations that account for the bulk of foreign trade with the U.S. This strategic shift aims to address the $1.2 trillion U.S. trade deficit by mirroring the tariffs these countries impose on U.S. goods.

Following this announcement, markets took another leg up. Bitcoin surged to nearly $88.4K, gaining 1.2% within two hours of the news, while the S&P 500 closed up 1.76% on the day.

Trump has also reiterated his desire for Powell and the Federal Reserve to cut interest rates, stating that the Fed would be “much better off” as tariffs “start to transition (ease!) their way into the economy,” as posted on his Truth Social account. However, Powell remains firm, reiterating that they will "wait and see" rather than pandering to Trump's requests. The Fed will act when it believes the time is right.

With the bulls naturally regaining momentum and tariff headlines finally favouring risk-on assets, Bitcoin is now positioned for a potential test of $90K before the end of March. Let’s not forget that Bitcoin hit $95K earlier this month—despite all the doom and gloom around the $76K low, Bitcoin remains green on the month and closer to its high than its low. Yet, sentiment still leans bearish.

Despite the broader market rally, XRP has remained sideways over the past 24 hours. However, a modest 0.37% gain has allowed XRP to reclaim the 55EMA, an extremely positive sign. The foundation is set—XRP has established a solid base of consolidation above the middle of its range, with the 21EMA and 55EMA acting as key levels of support. This positioning suggests a move towards the top of the range in the coming weeks.

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