Bitcoin bounces back above $90K as Trump delays Canada, Mexico auto tariffs

Bitcoin price has surged past $90,000 as investors reacted to President Donald Trump’s decision to delay imposing 25% tariffs on Canadian and Mexican auto imports. As reported by Reuters on Mar. 6, the move, which grants a one-month exemption for U.S. automakers, eased concerns that the trade war could damage domestic manufacturing and weighed on the dollar, fueling demand for risk assets like crypto. The decision came after Trump met with executives from Ford, General Motors, and Stellantis, according to White House press secretary Karoline Leavitt. Investors see the delay as an indication that tariffs may not cause as much economic disruption as anticipated. According to the price tracker on crypto.news, Bitcoin ( BTC ) is currently trading at $91,651, up 5% over the last 24 hours. The broader crypto market also advanced, gaining 2% amid improved risk sentiment. Although it is still in the “Extreme Fear” zone, the Fear and Greed Index increased 5 points to 25, indicating that investors are still being cautious. Crypto-related stocks also saw significant gains, with Coinbase (COIN) rising 4% and MicroStrategy (MSTR) jumping 12%%. At the same time, the U.S. dollar index (DXY) fell to its lowest level since November, historically a bullish signal for Bitcoin. You might also like: Trump to announce Bitcoin reserve strategy at White House Crypto Summit: report Despite the rally, open interest in Bitcoin futures is at its lowest level since October 2024, as previously reported by crypto.news on Mar. 5. This suggests that traders are choosing to remain cautious. Meanwhile, blockchain analytics firm Santiment noted that Bitcoin’s network continues to expand, with a rise in smaller wallets over the past month. However, there are signs that some large holders have taken profits recently. 📈 Bitcoin has rebounded back above $90K as prices have been rollercoastering here in March. There are 50K more wallets on the network than there were a month ago. By size, there are: 🐟 37,390 MORE wallets holding less than 0.1 $BTC 🐬 12,754 MORE wallets holding 0.1 – 100 $BTC … pic.twitter.com/xClRIGa4Rj — Santiment (@santimentfeed) March 5, 2025 Santiment analysts suggest that a rebound in large Bitcoin holdings could indicate renewed confidence and signal a potential breakout. For now, traders remain focused on Federal Reserve policy. According to the CME FedWatch Tool , futures markets are now pricing in up to three rate cuts this year, compared to previous expectations of just one. Bitcoin’s next major move could depend on whether the Fed follows through. Read more: Bitcoin Cash soars 30% to lead top coins amid market bounce