Cryptocurrencies Rally: Will Bitcoin Soar to $87,000 Following Trump’s Tariff Pause?
Bitcoin, Ethereum, and Dogecoin surged dramatically this week, with analysts predicting Bitcoin could reach $87,000 amid bullish market sentiment. The rally follows former President Donald Trump’s announcement of a tariff pause and the confirmation of Paul Atkins, a crypto-friendly figure, at the SEC. Investors are weighing macroeconomic factors and regulatory shifts as key drivers behind the uptick.
Market Momentum Builds as Bitcoin Breaks Key Resistance Levels
Bitcoin’s price surged past $67,000 this week, marking a 12% increase in just seven days. Ethereum and Dogecoin followed suit, rising by 9% and 15%, respectively. The rally comes as traders digest the implications of Trump’s decision to suspend tariffs on Chinese imports, easing global trade tensions and boosting risk appetite.
“The tariff pause removes a significant overhang from the markets,” said financial analyst Rebecca Lin of Global Markets Insights. “Investors are rotating into assets like Bitcoin, which they see as a hedge against potential inflation and geopolitical instability.”
Key technical indicators also support the bullish outlook:
- Bitcoin’s Relative Strength Index (RSI) has climbed above 60, signaling growing momentum.
- Trading volume spiked by 35% compared to last week, indicating strong institutional interest.
- Open interest in Bitcoin futures hit a three-month high, suggesting sustained upward pressure.
Trump’s Tariff Decision: A Catalyst for Crypto Gains?
Former President Trump’s unexpected tariff pause has injected optimism into financial markets. By temporarily lifting levies on $300 billion worth of Chinese goods, the move alleviates concerns about a prolonged trade war—a scenario that previously drove investors toward safe-haven assets like gold and stablecoins.
“Cryptocurrencies thrive in environments where traditional markets face uncertainty,” noted crypto strategist Mark Donovan. “With trade tensions cooling, capital is flowing back into high-growth, high-risk assets, including Bitcoin.”
Historical data supports this trend. During previous tariff rollbacks in 2019, Bitcoin’s price jumped nearly 20% within a month. If history repeats itself, the current rally could have room to run.
SEC Appointment Fuels Regulatory Optimism
Adding to the positive sentiment, the Securities and Exchange Commission (SEC) confirmed Paul Atkins, a known advocate for balanced crypto regulation, as a key advisor. Atkins has previously criticized aggressive enforcement actions against blockchain firms, raising hopes for a more collaborative approach under his guidance.
“Atkins’ appointment signals a potential shift in the SEC’s stance,” said legal expert Sarah Chen. “The market is interpreting this as a green light for innovation, which explains part of the rally.”
However, skeptics caution that regulatory clarity remains elusive. While Atkins may advocate for lighter oversight, the SEC’s broader leadership has yet to outline a clear framework for cryptocurrencies.
Can Bitcoin Hit $87,000? Analysts Weigh In
The $87,000 price target, floated by several analysts, hinges on multiple factors:
- Macroeconomic Trends: A dovish Federal Reserve or renewed inflation fears could drive demand.
- Institutional Adoption: Increased Bitcoin ETF inflows or corporate treasury allocations may provide support.
- Technical Breakouts: Sustained closes above $70,000 could trigger algorithmic buying.
JPMorgan analysts, however, remain cautious. In a recent note, they highlighted Bitcoin’s volatility and warned that profit-taking could cap gains near $75,000. “The road to $87,000 isn’t linear,” they wrote. “Investors should brace for pullbacks.”
What’s Next for Crypto Investors?
The coming weeks will test whether the current rally has staying power. Key events to watch include:
- Upcoming Fed meetings and their impact on interest rates.
- Further developments in U.S.-China trade relations.
- SEC decisions on pending Bitcoin ETF applications.
For now, the crypto market is riding a wave of optimism. Whether Bitcoin reaches $87,000 or faces resistance at higher levels, one thing is clear: volatility will remain a constant companion.
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