Bitcoin gains 2.7% as tariff fears ease

Bitcoin (CRYPTO:BTC) rallied nearly 3% to $86,700 on March 24, 2025, as reports emerged that the White House plans to scale back its April 2 tariff strategy, omitting sector-specific duties while targeting reciprocal tariffs on major trading partners.

The shift eased recession concerns and lifted crypto sentiment, though analysts caution that macroeconomic uncertainty remains a key factor.

The Trump administration’s decision to adopt a more targeted approach—focusing on nations with persistent trade imbalances—followed weeks of volatility sparked by fears of sweeping tariffs.

Bitcoin’s price rebounded from lows of $81,200 earlier in the week, reflecting broader relief in risk assets.

“Higher policy uncertainty has caused investors to reduce portfolio risk across the board,” Zach Pandl, head of research at Grayscale, noted, highlighting how Bitcoin often mirrors macroeconomic trends.

While tariffs do not directly influence crypto prices, Pandl emphasised their role in shaping broader market sentiment.

The tariff adjustment coincided with the Federal Reserve’s decision to slow its balance sheet reduction, capping Treasury runoff at $5 billion monthly.

This move aimed to stabilise funding markets amid debt ceiling tensions.

Earlier data showed cooling inflation (2.8% in February) and steady interest rates, signaling easing financial conditions

However, Bloomberg Economics warned that Trump’s tariff policies could reduce U.S. GDP by up to 0.7% and raise inflation by 0.4%, contradicting claims of economic benefits.

An ECB official also highlighted historical risks of U.S.-originated financial crises spreading globally.

Despite recent bullish momentum, crypto analytics firm CryptoQuant reported Bitcoin’s Bull Score Index at a two-year low of 20, indicating weak sentiment.

The index tracks metrics like exchange inflows and miner activity, suggesting potential for a prolonged downturn.

While Bitcoin’s short-term gains reflect tariff-related optimism, analysts stress that sustained growth hinges on clearer macroeconomic signals.

At the time of reporting, the Bitcoin (BTC) price was $86,975.63.