Bitcoin Surges Past $87,000 as Tariff Concerns Ease: What It Means for Crypto Traders

This surge, accompanied by gains in other major cryptocurrencies like XRP and Solana, came as investors found relief from softened tariff concerns and encouraging economic data. For crypto traders, this development signals a shift in sentiment that could shape the market's short-term direction.

Bitcoin’s Rally: A Sign of Renewed Confidence

Bitcoin’s 3.29% rise to $87,033 marked a level not seen since March 7. Alongside Bitcoin, Ethereum also advanced 3.2%, crossing the $2,000 mark to trade at $2,066.

Other notable gainers included XRP, which rose 3% to $2.46, and Solana, which spiked 5.6% to reach $138. The broader GMCI 30 Index, tracking the top 30 cryptocurrencies, also recorded a 3% jump.

This rally appears closely linked to shifting political developments in the U.S. market. While the announcement of stringent tariffs from former President Donald Trump had previously shaken investor confidence, the White House’s recent decision to pursue a more "targeted" approach calmed some fears. By avoiding sweeping tariff measures, markets found a measure of relief — and crypto benefited from the positive sentiment.

"The crypto markets are surging as investors respond positively to Trump's more cooperative stance on tariffs, set to take effect on April 2, alongside the Fed's focus on long-term inflation trends," said Vincent Liu, Chief Investment Officer at Kronos Research.

Economic Data Provides an Extra Boost

Beyond politics, recent economic data further strengthened investor confidence. While U.S. unemployment claims rose slightly by 2,000 to 223,000, the job market remains robust. Additionally, February’s consumer price index (CPI) showed inflation easing to 2.8%, offering reassurance that inflation concerns may be stabilizing.

"In recent years, macro observers have generally been more precarious in their assessments than the actual reality, and we believe that the underlying economy remains stronger than feared," said Augustine Fan, Head of Insights at SignalPlus.

For crypto traders, these data points matter. A stable economic backdrop, combined with reduced tariff anxiety, creates an environment where investors are more willing to re-enter riskier markets like crypto. This confidence can amplify gains, especially in high-momentum assets like Bitcoin and Solana.

What Comes Next for Crypto Traders?

Despite this surge, analysts are cautioning against excessive optimism. Rachael Lucas, a crypto analyst at BTC Markets, warned that Trump's tariffs could still introduce volatility in the coming weeks.

"Markets generally don’t like uncertainty, and with the potential for unpredictable outcomes, we're likely to see some choppiness as traders adjust their positions," Lucas explained.

The upcoming implementation of reciprocal tariffs could trigger a "knee-jerk" market reaction, as traders digest new risks. The ultimate impact will likely depend on the scale and duration of the tariffs, Lucas added.

Short-Term Risks vs. Long-Term Opportunities

If Trump's tariff measures are seen as part of a broader negotiation strategy rather than a prolonged economic conflict, the crypto market may experience a "relief rally" — a period when investors regain confidence and push prices higher.

"When it comes to crypto, tariffs could place additional short-term pressure on risk assets, particularly if the U.S. dollar strengthens because of trade tensions," Lucas explained. "However, if the market views the tariffs as a strategic move that avoids a drawn-out conflict, we could see positive momentum continue."

Conclusion: A Market in Transition

The recent rally shows how quickly sentiment can shift in the crypto market. Bitcoin’s climb past $87,000 highlights renewed investor confidence, bolstered by a combination of improved economic data and softened political concerns. However, traders should remain cautious as new tariff developments unfold.

For those active in the market, this period offers opportunities — but also demands vigilance. Crypto remains highly responsive to macroeconomic shifts, and staying informed will be crucial for navigating the road ahead. As always, disciplined investing and strategic decision-making will be key to maximizing gains in this volatile yet promising space.