Crypto Rally- Bitcoin Gains 3.7% as Tariff Delay and Dollar Weakness Support Crypto
Crypto Rally– In a volatile week of headlines, news of a tariff delay from the U.S. government on auto parts from Canada and Mexico helped calm investor concerns, with Bitcoin (BTC) leading a recovery in the crypto market.
The U.S. government confirmed it would delay tariffs for a month, which was initially set to begin immediately. This move, following Germany’s decision to ease debt limits for infrastructure spending and China’s increase in its deficit target, contributed to a rally in risk assets.
Bitcoin saw a 3.7% rise over 24 hours, pushing its price above $90,000. Other assets in the CoinDesk 20 Index also saw gains, with Bitcoin Cash (BCH), Chainlink (LINK), and Aptos (APT) recording impressive double-digit increases. Traditional markets followed suit, with the Nasdaq rising by 1.2% and the S&P 500 up 1.5% during the session’s afternoon hours. Crypto stocks also rebounded, with Coinbase (COIN) gaining 3.5%, while corporate Bitcoin holder Strategy saw a nearly 10% increase.
Geopolitical Risks and the Dollar’s Weakening
Geopolitical tensions and trade risks had recently taken a toll on market sentiment, driving down risk assets like U.S. stocks and crypto. However, this time, unlike in previous instances where investors flocked to the U.S. dollar, the U.S. dollar index (DXY) fell sharply, dropping to its weakest level since early November and down over 5% from its January peak.
Joel Kruger, a market strategist at LMAX Group, noted, “With Fed rate expectations shifting to anticipate more rate cuts in 2025 and Bitcoin emerging as a store of value, we expect Bitcoin to remain well-supported on dips.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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