Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin rose over 1% on Tuesday, rebounding from muted movement in the prior session as investor sentiment improved following U.S. President Donald Trump’s remarks about pausing auto import tariffs. Speculative momentum also grew on reports that the U.S. government may use tariff revenue to buy Bitcoin and bolster strategic crypto reserves.
As of 02:23 ET (06:23 GMT):
- Bitcoin rose 1.1% to $85,478.10, recovering further from last week’s lows below $75,000
Trump Softens on Tariffs — Slight Relief, But Uncertainty Lingers
Markets found some breathing room after Trump signaled a possible exemption for foreign-made vehicles, especially for Canada and Mexico, suggesting a more targeted and selective enforcement of trade tariffs.
This follows prior tariff rollbacks on key electronics, including smartphones and laptops, primarily imported from China. However, the optimism remains cautious:
- The administration is still exploring new tariffs on semiconductors and pharmaceuticals
- 145% tariffs on Chinese goods remain in place, with Beijing retaliating with its own 125% levy
“There’s some short-term optimism, but investors remain skeptical as the broader direction of U.S. trade policy is still volatile,” said analysts.
U.S. May Use Tariff Revenue to Buy Bitcoin – Reports
Fueling bullish speculation, media reports on Tuesday suggested that the Trump administration is considering allocating tariff revenue to purchase Bitcoin as part of an effort to:
- Boost national reserves
- Avoid new debt issuance or tax hikes
- Support the creation of a “strategic crypto reserve” under a new executive order
While unconfirmed, the reports have energized the crypto community and added a layer of speculative support to Bitcoin’s price action.
“Such a move would be unprecedented and signal a major shift in how governments view Bitcoin—as not just a volatile asset, but a potential financial hedge,” one strategist noted.
Altcoins Mixed as Trade Jitters Persist
Altcoins traded in a narrow band amid lingering economic uncertainty and cautious investor sentiment:
- Ether (ETH): +0.9% to $1,638.57
- XRP: +0.8% to $2.1378
- Solana (SOL): -0.7%
- Cardano (ADA): flat
- Polygon (MATIC): flat
Among meme tokens:
- Dogecoin (DOGE) fell 3.3%
- $TRUMP token dropped 3.8%
The underperformance of meme coins reflects risk-off positioning, as traders rotate into larger-cap, more stable tokens during a period of policy and market uncertainty.
Outlook: Bitcoin Buoyed by Macro Speculation, But Caution Prevails
With rumors of U.S. government Bitcoin purchases circulating and tariff rhetoric softening, Bitcoin could see more upside in the short term. However, gains are likely to remain measured and volatile amid:
- Persistent U.S.-China trade tensions
- Ongoing Fed and ECB policy shifts
- Lack of official confirmation on the strategic crypto reserve initiative
Traders will be watching for:
- Further White House comments on crypto policy
- Developments on semiconductor and pharma tariff plans
- Fed Chair Powell’s speech on Wednesday, which may shape macro sentiment for risk assets including crypto
For now, Bitcoin appears resilient, but market confidence remains fragile in the face of a complex and evolving policy backdrop.
