Bitcoin surged above $85,000 on Tuesday as cryptocurrency markets responded positively to expectations of less severe tariffs ahead of former President Trump's scheduled announcement.
The leading cryptocurrency briefly touched $85,000, marking a 2.5% gain over 24 hours, while other major cryptocurrencies also rallied. Ethereum climbed 4% to $1,917, Dogecoin rose 3% to $0.17, and Cardano added 2.5%.
The upswing comes as traders bet that Trump's upcoming "Liberation Day" tariff implementation, planned for Wednesday at the White House Rose Garden, may be more moderate than initially feared.
"Traders are buzzing over Trump's tariff chatter for April 2 and are leaning to the hint that there will be softer policies than expected," said Sid Powell, CEO of Maple.
However, market experts remain cautious about potential volatility once the actual tariffs are revealed. "Risk assets like crypto might take a beating if tariffs end up boosting the dollar or slowing global growth," Powell added.
The cryptocurrency rally occurred amid mixed economic indicators. While March's Purchasing Managers' Index showed the fastest price increases since mid-2022, factory activity contracted. Consumer confidence dropped to a four-year low last week.
Traditional markets also showed optimism, with the Nasdaq gaining 0.87% and the S&P 500 rising 0.38%. Gold continued its upward trend as investors sought safe-haven assets.
According to Joe DiPasquale, CEO of BitBull Capital, the market recovery reflects expectations that the new tariffs will be more targeted, possibly excluding certain countries and avoiding compound levies on specific goods.
The immediate market response suggests renewed institutional interest in cryptocurrencies, though analysts recommend watching for continued market swings as the tariff policies take shape.