Trump Delays Tariffs for 90 Days! Bitcoin Soars: Bounce or Reversal?

TradingKey - Trump’s tariff delay sparked a 12% surge in Bitcoin. Will this rally continue? 

On Wednesday, U.S. President Trump announced a 90-day delay on tariffs for countries that do not retaliate. This news boosted the crypto market. Bitcoin (BTC) jumped over 12%, rising from a low of $74,000 to a high of $83,000. Market sentiment improved.

Bitcoin price trend chart, source: CoinMarketCap.

After Trump’s announcement, expectations for interest rate cuts dropped significantly. As of this writing, the probability of a 25 basis point cut by the Fed in May fell from 45.2% to 15%. The chance of rates staying the same increased from 54.8% to 85%.

Market expectations for Fed's May meeting results, source: CME.

In the short term, Trump’s tariff delay helps ease market panic, allowing Bitcoin to rebound. However, his actions weaken the likelihood of Fed rate cuts. The market still lacks sufficient liquidity. This makes it difficult for Bitcoin prices to rise further. Resistance is expected around $90,000.