TLDR
- The White House suggests a more focused tariff agenda by April 2, sparking Bitcoin to climb by 2.7%.
- On Sunday, Bitcoin exceeded $86,700, showing resilience despite last week's volatile shifts.
- Trump suggested there might be some 'flexibility' in his tariff strategy, especially regarding China.
- Markets worldwide reacted positively, with S&P 500 futures gaining 0.9% due to the news of focused tariffs.
- Reports indicate a decrease in GDP forecasts for the United States (2.2% by 2025) and globally (3.1% by 2025).
Bitcoin and global stock markets saw a renewed vigor on Monday, riding on the news that the Trump administration plans for more specific tariff implementations, easing market fears of economic disruptions.
Bitcoin picked up momentum on Sunday, marking a 2.7% increase after reports emerged from Bloomberg and the Wall Street Journal commented on the White House's narrow focus on tariffs. The cryptocurrency's strength lifted it above $86,700 by the midnight hour.
This marks a 3.3% uptick for the day. The larger crypto space mirrored this with a 0.7% uplift in overall market cap, as evidenced by CoinGecko data.
After a week of volatility, Bitcoin bounces back, with recent tariff discussions providing the needed lift after it touched lows of $81,200.
April 2 was hailed by President Trump as 'Liberation Day,' marking a day for broad tariff measures, yet recent signs suggest a more deliberate strategy.
Treasury Secretary Scott Bessent mentioned last week that tariffs would be imposed on 'around 15% of countries with consistent trade imbalances with the U.S.', thus alleviating some market apprehensions.
Trump Signals Flexibility
In Oval Office discourse, Trump hinted at flexibility in his methods. 'I don't change. Yet flexibility is crucial,' Trump expressed. 'Occasionally it's flexibility, so there'll be room for it though mainly it's reciprocal.'
Trump specifically pointed to China in his narrative, indicating potential for trade talks with the nation while hoping to convene with Chinese leader Xi Jinping soon.
Global equity markets also welcomed the news. Europe's Stoxx 600 index saw a 0.5% bump on Monday, led by sectors sensitive to tariffs including commodities and auto manufacturers.
S&P 500 futures saw a 0.9% rise, breaking a four-week losing streak. The positivity arose as investors braced for Trump's April 2 timeline.
Daniel Murray, at the helm of EFG Asset Management in Zurich, remarked: 'Markets have taken solace from the novel tariff approach by the Trump regime.'
Murray noted, 'Some sectors and nations might have better outcomes than others, shedding light on the market's buoyancy.'
The Federal Reserve keeping interest rates steady, along with cooling CPI numbers (2.8% in February), has been perceived as signaling easing financial climates by some investors.
While tariffs don't directly sway Bitcoin in the short term, Zach Pandl from Grayscale explained to Decrypt that Trump's trade decisions reflect a broader macro trend. Bitcoin operates within this macro unpredictability, says Pandl.
Bloomberg's analysis shows Trump's tariffs, enacted or threatened, impacted upwards of $1.8 trillion in international trade. This includes a 25% levy on steel and aluminum globally, 25% on non-compliant USMCA merchandise, and an extra 10% on Chinese products.
Despite the rally, economic prognosticators adjusted their growth predictions downward. The OECD revised U.S. GDP from 2.4% to 2.2% for 2025, and from 2.1% to 1.6% for 2026.
Global GDP follows suit, adjusted from 3.3% to 3.1% in 2025 and from 3.3% to 3.0% in 2026. The OECD attributes this to 'increased trade barricades in various G20 economies and growing geopolitical and policy ambiguities,' which they believe hinders investments and consumer expenditure.
The EU announced they are postponing retaliatory tariffs on U.S. products to allow 'extra time for talks with the U.S. administration,' yet they insisted this does not aim to 'blunt the effect of their retort.'
In commodities spheres, oil saw an upswing, taking advantage of the idea of more selectively applied trade tariffs. Gold prices hovered around $3,022 per ounce, slightly below the records set last week.
Recent movements suggest the White House is honing its tariff tactics, aiming to align trade goals with prospective market and economical effects. Markets seem to respond optimistically to this more nuanced approach.
