TradingKey – Trump’s tariff postponement triggered a 12% surge in Bitcoin. Will this upward trend persist?
On Wednesday, U.S. President Trump revealed a 90-day deferment on tariffs for nations that refrain from retaliating. This development fueled the cryptocurrency market. Bitcoin (BTC) soared over 12%, climbing from a low of $74,000 to a peak of $83,000. The mood in the market improved significantly.
Bitcoin price trend chart, source: CoinMarketCap.
Following Trump’s announcement, expectations for interest rate reductions plummeted significantly. At the time of this report, the likelihood of a 25 basis point cut by the Fed in May decreased from 45.2% to 15%. Meanwhile, the probability of maintaining current rates surged from 54.8% to 85%.
Market expectations for Fed’s May meeting results, source: CME.
In the near term, Trump’s tariff delay alleviates market anxiety, enabling Bitcoin to recover. However, this move diminishes the chances of Fed rate cuts. The market is still experiencing a liquidity shortage, hindering further increases in Bitcoin prices, with resistance anticipated around $90,000.
Disclaimer: For informational purposes only. Past performance does not guarantee future results.
