Bitcoin Surges to $88,000 as Trump Signals Flexibility on Tariffs

The cryptocurrency market kicked off the week in the green, driven by President Donald Trump's taking a more flexible approach to upcoming tariffs, which has lifted investor sentiment.

Bitcoin (BTC) rose approximately 3.6% in the past 24 hours, trading around $88,192. Ethereum (ETH) increased by about 4%, reaching $2,087. XRP recorded a 2.5% uptick, trading at $2.48, while Solana (SOL) advanced 7.7% to $143.

The total cryptocurrency market cap increased by 1.6% in the past 24 hours, reaching $2.98 trillion, according to CoinGecko. During this period, total liquidations amounted to $254 million, with BTC accounting for $107 million and ETH following with $41 million.

Tariff Threats Ease

Analysts suggest that a more measured approach to tariffs could ease macroeconomic pressures, though some remain divided on the actual impact.

Trump on Friday signaled flexibility on upcoming reciprocal tariffs, suggesting some countries may be exempt and specific tariffs on industries like automobiles, pharmaceuticals, and semiconductors may not be imposed.

Michael Brown, Senior Research Strategist at Pepperstone, remains skeptical about the market’s reaction, noting that tariff flexibility is nothing new. “I struggle, in all honesty, to get especially excited about this – flexibility is somewhat obvious, really, when the tariff that the US levy on imports will correspond to whatever it thinks the nation in question charges,” he said.

He added that reciprocal measures would not be applied as a “blanket levy on all imports,” and the risk rally seems to be an overreaction to a routine policy statement.

Bitcoin Reserve

Another key factor behind the market’s momentum is Trump’s recent comments on potentially using profits from gold sales to purchase Bitcoin as part of U.S. national reserves.

“This is seen as a groundbreaking development, marking a significant shift in the U.S. government's stance on cryptocurrency,” said Linh Tran, Market Analyst at XS.com. “In the past, Bitcoin was often considered a risky asset or a speculative tool, but this move suggests it is gradually being recognized as part of the global financial system.”

If implemented, the strategy could accelerate institutional adoption of Bitcoin and set a precedent for other nations to consider digital assets as part of their reserves.