Trump Delays Tariffs for 90 Days! Bitcoin Soars: Bounce or Reversal?
TradingKey - Trump’s tariff delay sparked a 12% surge in Bitcoin. Will this rally continue?
On Wednesday, U.S. President Trump announced a 90-day delay on tariffs for countries that choose not to retaliate. This news provided a boost to the cryptocurrency market, with Bitcoin (BTC) surging more than 12%, climbing from a low of $74,000 to a high of $83,000. Market sentiment showed a marked improved.
Bitcoin price trend chart, source: CoinMarketCap.
Following Trump’s announcement, expectations for imminent interest rate cuts declined sharply. As of this writing, the probability of a 25 basis point cut by the Fed in May dropped from 45.2% to 15%, while the likelihood of rates remaining unchanged rose from 54.8% to 85%.
Market expectations for Fed's May meeting results, source: CME.
In the short term, Trump’s tariff delay has helped ease market panic, allowing Bitcoin to rebound. However, it also diminishes the chances of a near-term rate cut from the Fed. The broader market continues to face a liquidity liquidity crunch, which may limit further upside for Bitcoin This makes it difficult for Bitcoin prices to rise further. Technical analysts point to resistance around the $90,000 level.
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