Bitcoin Surges 3% as Trump Tariff Fears Ease, ETH Hits $2,090
Bitcoin and the broader crypto market rallied Monday as reports emerged that President Trump’s planned April 2 tariffs may be less severe than initially feared, easing concerns about potential economic headwinds.
The leading cryptocurrency gained over 3% in the past 24 hours to reach $87,300, while Ethereum surged nearly 4% to $2,090 as the market responded positively to the softening trade rhetoric.
Market Rally Driven by Multiple Catalysts
The upward momentum comes as the Federal Reserve maintained its forecast for two interest rate cuts in 2025 while downplaying inflation risks from the upcoming tariffs. According to Markus Thielen, founder of 10x Research, “Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward ‘flexibility’ on the reciprocal tariffs.”
Ethereum Shows Strength as Exchange Supply Drops
Ethereum’s impressive performance coincides with exchange reserves hitting their lowest levels since November 2015, suggesting strong holder conviction and reduced selling pressure. This technical indicator often precedes sustained price rallies.
Broader Market Gains
The positive sentiment extended across the crypto market:
- Mantle Network’s MNT token: +6%
- Trump-linked WLFI: Major accumulation
- TRUMP token: +9% after presidential endorsement
- AI and meme coins: Widespread gains exceeding 9%
Institutional Developments
The market rally comes alongside significant institutional moves:
- DWF Labs announces $250M fund for established crypto projects
- Coinbase reportedly in talks to acquire Deribit
- dYdX launches protocol fee buyback program
Looking Ahead
Key events to watch this week:
- U.S. PCE data release (Friday)
- SEC nominee Paul Atkins’ Senate hearing (March 27)
- Trump tariff implementation (April 2)
FAQs
How will Trump’s tariffs affect crypto markets?
The moderated stance on tariffs reduces economic uncertainty, potentially supporting risk assets like cryptocurrencies.
What’s driving Ethereum’s price increase?
Declining exchange reserves and broader market optimism are key factors behind ETH’s rally to $2,090.
When will the new tariffs take effect?
The Trump administration’s reciprocal tariffs are scheduled to begin April 2, 2025.