Bitcoin Reclaims the $90,000 Landmark After U.S. Trade‑Tariff Reversal
The cryptocurrency market steadied on Wednesday, with Bitcoin climbing back above $90 k following President Donald Trump’s decision to scrap pending tariffs on European imports. The rally lifted major altcoins and pushed the total market cap past the $3‑trillion mark.
Market snapshot (24‑hour)
| Asset | Price | 24‑hr change |
|---|---|---|
| Bitcoin (BTC) | $90,100 | +0.9 % (recovered from a low of $87,200) |
| Ethereum (ETH) | $3,050 | +2.0 % |
| Solana (SOL) | $131 | +3.3 % |
| XRP | $1.97 | +4.0 % |
| Total crypto market cap | $3.14 tn | +1.1 % (Coingecko) |
Beyond the top four, most of the Top‑100 digital assets posted gains. Notable performers included Myx Finance (+19 %), Canton (+16 %) and PUMP (+10 %).
Leveraged positions were hit hard by prior volatility: CoinGlass reports roughly 166,000 liquidations totalling $1.01 bn, with Bitcoin accounting for $425 m and Ethereum $365 m of that amount.
The political catalyst
On Wednesday, President Trump announced on his social platform that, after a constructive discussion with NATO Secretary‑General Jens Stoltenberg and Dutch Prime Minister Mark Rutte, the administration would not enforce the tariff regime slated to begin on 1 February. The tariffs, aimed at European goods, had been a source of market unease since their proposal in late January.
The policy reversal removed a key geopolitical risk factor for investors, prompting a swift re‑pricing of risk‑on assets, including cryptocurrencies. The move was interpreted as a signal that the United States is seeking to avoid an escalation of trade tensions that could spill over into broader financial markets.
Additional supportive signals
The crypto‑friendly narrative was reinforced by remarks from David Sacks, the White House’s “AI and Crypto Czar.” Speaking to CNBC, Sacks said he expects traditional banks to deepen their crypto integration once the pending Clarity Act clears Congress. The statement added to the optimism surrounding regulatory clarity and institutional adoption.
Parallel market moves
Equity markets mirrored the positive sentiment. The S&P 500 rose 1.5 % and the Nasdaq gained 1.9 % over the same period, while gold retreated from its recent record, stabilising near $4,800 per ounce. The coordinated rally across risk assets suggests that the tariff cancellation removed a systemic shock that had been dampening broader market enthusiasm.
Analyst perspective
- Risk‑on dynamics: The sudden removal of a trade‑policy headwind lowered the perceived macro‑risk premium, prompting traders to shift capital back into higher‑growth assets such as crypto and tech equities.
- Liquidity squeeze: The previous week’s volatility forced a wave of leveraged liquidations, particularly in BTC and ETH contracts. The unwind may have cleared the order books, allowing fresh buying pressure to push prices higher.
- Regulatory optimism: Signals from the White House about forthcoming legislation provide a narrative of increasing governmental acceptance, which could catalyse further institutional inflows.
- Breadth of participation: Gains across the majority of the Top‑100 tokens indicate a market‑wide rally rather than a narrow Bitcoin‑centric bounce, suggesting broader risk appetite.
Key takeaways
- Bitcoin breaches $90 k: The price recovery from a daily low of $87,200 demonstrates the market’s sensitivity to geopolitical news.
- Crypto market cap climbs above $3 tn: A 1.1 % rise underscores expanding total value despite recent turbulence.
- Leverage unwind: Over $1 bn in forced liquidations highlights the volatility risk for heavily leveraged traders.
- Policy shift fuels optimism: The cancellation of U.S. tariffs on Europe is seen as a catalyst for the current rally, reinforcing the link between macro‑policy and digital‑asset pricing.
- Regulatory signals matter: Anticipation of the Clarity Act and supportive statements from the White House may underpin continued upward pressure on crypto valuations.
The confluence of a geopolitical de‑escalation, regulatory encouragement, and a clearing of leveraged short positions created a conducive environment for Bitcoin to reclaim the $90,000 milestone. Market participants will now be watching for any further policy developments and the rollout of the Clarity Act as the next potential drivers of crypto momentum.
Source: https://thedefiant.io/news/markets/bitcoin-reclaims-usd90-000-after-trump-cancels-europe-tariffs
