Bitcoin prices skyrocketed above $90,000 as investors responded to President Donald Trump's decision to delay impose a 25% tariff on Canadian and Mexican car imports.
As reported by Reuters on March 6, the move to grant US automakers a one-month exemption, alleviated concerns that the trade war would damage domestic manufacturing, squeeze the dollar and drive demand for risky assets like crypto.
According to White House Press Secretary Karoline Leavitt, the decision came after Trump met with executives at Ford, General Motors and Stellantis. Investors see this delay as a sign that tariffs may not cause economic disruption as expected.
According to price trackers at Crypto.News, Bitcoin (BTC) is currently at $91,651, an increase of 5% over the past 24 hours. The broader crypto market has also progressed, up 2% amid improved risk sentiment. Although still in the “extreme fear” zone, the fear and greedy index rose by 5 points to 25, indicating that investors are still cautious.
Crypto-related inventory also rose significantly, with Coinbase (Coin) rising 4% and MicroStrategy (MSTR) jumping 12%%. At the same time, the US Dollar Index (DXY) fell to its lowest level since November. This has historically been a bullish signal for Bitcoin.
Despite the rally, open interest in Bitcoin futures is at its lowest level since October 2024, as previously reported by crypto.news on March 5th. This suggests that traders are choosing to be cautious.
Meanwhile, blockchain analytics firm Santiment said that Bitcoin's network continues to expand, with small wallets increasing over the past month. However, there are signs that some large holders have recently been making profits.
Santiment analysts suggest that rebounds at large Bitcoin Holdings could show new confidence and potential breakouts.
For now, traders are focusing on the Federal Reserve policy. According to the CME FedWatch tool, the futures market has priced up to three interest rate cuts this year compared to one previous expectations this year. The next major move for Bitcoin could depend on whether the Fed will continue.
