In a dramatic turn of events this week, Bitcoin has crossed the $90,000 mark, fueled by President Donald Trump’s unexpected decision to delay tariffs on auto parts imported from Canada and Mexico. This announcement, made on Wednesday, has significantly eased investor concerns, propelling Bitcoin and the broader cryptocurrency market into a bullish trend.

Impact of Tariff Delay on Bitcoin and Crypto Markets

The U.S. government confirmed that it would postpone the implementation of these tariffs by one month, just a day after they were enacted. This move aims to alleviate pressures on debt limits for infrastructure spending, while also responding to China’s increased target deficit. As a result, Bitcoin (BTC) surged by 3.7% in the last 24 hours, reaching just above $90,000.

Almost all assets within the CoinDesk 20 Index saw gains, with notable performances from Bitcoin Cash (BCH), Chainlink (LINK), and Aptos (APT), all of which recorded double-digit increases. Traditional markets also responded positively, with the tech-heavy Nasdaq and the broad-market S&P 500 rising by 1.2% and 1.5%, respectively, during the afternoon trading session.

Crypto Stocks Rally Following Bitcoin’s Rise

In addition to Bitcoin’s impressive performance, crypto-related stocks have also rebounded from earlier week lows. Coinbase (COIN), a leading cryptocurrency exchange, saw its shares rise by 3.5%, while Strategy, the largest corporate holder of Bitcoin, experienced a nearly 10% increase in its stock value.

Geopolitical Risks and Market Sentiment

Recent trade tensions and geopolitical risks have dominated headlines, impacting investor sentiment and pressuring risk assets, including U.S. stocks and digital currencies. Joel Kruger, a market strategist at LMAX Group, noted that such risk-off episodes typically lead investors to seek refuge in the U.S. dollar, which often results in downward pressure on crypto assets. However, this time, the U.S. dollar index (DXY) has plummeted to its lowest level since early November, down more than 5% from its mid-January peak.

“With Fed rate expectations shifting back to pricing more rate cuts than less in 2025, and with Bitcoin capable of shining as a store of value asset, we believe there are plenty of reasons to expect Bitcoin to be well supported on dips,” Kruger stated.

Bitcoin’s Fundamentals Show Strength

Despite the volatility in Bitcoin’s price over the past few days, crypto analytics firm Swissblock reported that its Bitcoin Fundamental Index, which assesses the overall health of the network, has remained stable. Analysts from Swissblock indicated that Bitcoin’s fundamentals are on the verge of entering a bullish phase, with improvements in liquidity and network growth.

“This strength suggests that BTC is unlikely to be driven into a bear market,” the analysts conveyed in a recent Telegram broadcast.

Upcoming Digital Assets Summit

In related news, Michael Saylor, co-founder of Strategy, announced his attendance at the White House Digital Assets Summit scheduled for March 7, 2025. This event, hosted by President Trump, will gather key figures from the cryptocurrency sector, including Ripple CEO Brad Garlinghouse, Chainlink co-founder Sergey Nazarov, and Exodus CEO JP Richardson.

Saylor, a prominent advocate for Bitcoin, has made headlines with his ambitious prediction that Bitcoin’s market cap could eventually reach $200 trillion, with individual Bitcoin prices potentially soaring to $10 million. The summit aims to discuss the future of digital assets within the U.S. financial system, particularly as the Presidential Working Group on Digital Assets seeks to integrate cryptocurrencies like XRP, Solana, and Cardano into the nation’s financial framework.

This initiative is part of the U.S. government’s broader efforts to strategically examine the role of cryptocurrencies in the economy. For more details, you can read the original article here.