BTC Finally Breaks Past $87K Amid Hopes for Softer Trump Tariffs

Bitcoin’s price surge this week has captured the attention of investors, as it broke past the $87K mark. This impressive jump came on the back of news that U.S. President Donald Trump may take a less aggressive approach to the upcoming trade tariffs, set to take effect on April 2.

With the global economy still grappling with uncertainties, Bitcoin’s rise serves as both a reflection of changing market sentiment and a potential indicator of what’s to come.

Tariff Changes Help Push Bitcoin Higher

For weeks, the markets had braced for harsh trade tariffs that could weigh down risk assets, including Bitcoin. Initially, the proposed tariffs were expected to be sweeping, potentially targeting a wide range of industries and nations. In February, these concerns triggered a significant drop in Bitcoin’s price—nearly 17.6%.

But recently, there’s been a shift in expectations. According to new reports, the tariffs set for April 2 could be more targeted, focusing only on specific countries with large trade imbalances with the U.S., such as China, Japan, India, and Vietnam. This new development has helped ease fears of a trade war, resulting in a more positive outlook for cryptocurrencies.

Treasury Secretary Scott Bessent further fueled optimism by suggesting that countries might be able to negotiate trade terms to avoid steep tariffs. This flexibility—along with the broader sense of reduced tension—has helped revitalize interest in riskier assets like Bitcoin.

Can Bitcoin Reach $90K?

With worries about tariff escalation subsiding, some analysts are now speculating that Bitcoin may have found its bottom. Its price has begun to climb again, and many see the recent change in Trump’s stance as a key driver of this rebound.

Markus Thielen, founder of 10x Research, noted that Bitcoin is showing signs of a possible reversal, with its 21-day moving average now hovering around $85,200. Thielen’s research suggests that Bitcoin could be headed toward $90,000, provided the positive sentiment continues to build. However, he does caution that significant resistance may emerge at this $90K level, making it a tough hurdle for Bitcoin to clear.

“There’s no immediate catalyst for a parabolic rally,” Thielen remarked, pointing out that while the market is moving in the right direction, momentum could slow once Bitcoin reaches this critical resistance point.

What’s Next for Bitcoin?

As Bitcoin sees growth, investors' attention is turning to several important events. On March 27, the Senate Banking Committee will hold a hearing with SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould, discussing potential changes to regulations. Additionally, the March 29 PCE reading will offer more insight into the Federal Reserve’s stance on inflation, which could impact market sentiment. For now, the outlook appears cautiously optimistic. If the tariffs remain less severe and the Federal Reserve continues its supportive approach, the crypto market could see more positive momentum.

Beyond the financial markets, another key player in the space is Japan’s Metaplanet Inc. The Bitcoin investment firm, which is ramping up its holdings, has tapped Eric Trump to join its Strategic Board of Advisors. This move signals the company’s plans to expand its global presence and boost Bitcoin adoption.

Bitcoin’s break past $87K has been a welcome development for investors, but it’s important to stay grounded. The shift in tariff expectations is a positive catalyst, but the road ahead is far from predictable. While the price may continue to rise, factors like regulatory changes, inflation data, and global trade tensions will all play critical roles in shaping the cryptocurrency’s trajectory.

As always, Bitcoin remains a speculative asset, subject to sudden shifts in market sentiment and external pressures. But for now, with tariffs easing and the Fed showing signs of flexibility, Bitcoin seems poised to continue its upward march.