Bitcoin's price Early Wednesday, the Dow Jones Industrial Average gained 7%, and traded just under $90,000, as investors grew more optimistic that U.S. trade tariffs could be avoided.
The time this was written is the current date. Bitcoin , which is currently trading at $89970.57 and has gained 7.7% over the last day. Meanwhile, Ethereum's price CoinGecko’s data shows that ETH recovered 6.1% when sent above $2,200.
Howard Lutnick, U.S. commerce secretary, told reporters late last night Fox News Donald Trump, the President of the United States will be in office on Tuesday "probably" Today, you can announce that a deal has been reached with Canada or Mexico. If that happens, it'll lessen the blow of what otherwise would have been a new 25% tariff on two of the country's top trading partners.
"I think he's going to work something out with them. It's not going to be a pause. None of that pause stuff. But I think he's going to figure out, 'You do more and I'll meet you in the middle some way,'" Lutnick was told Fox News Larry Kudlow, host "Somewhere in the middle will likely be the outcome for the President moving with the Canadians and Mexicans, but not all the way."
The news arrives after major stock indices, like the S&P 500 and the Dow Jones Industrial Average, posted 1.2% and 1.5% losses on Tuesday. Bitcoin fell to below $82,000 at the same time. This erased all the gains made since Trump took over the White House.
Investors can be forgiven if they feel a sense déjà vu. The U.S. only halted their punishing tariffs against Canada and Mexico last month, yet still needed to repair its broken trade agreement with China.
It is the same this time.
Faced with a tariff of 20 percent on Chinese imports the country has promised not to backdown. "If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war," Lin Jian, spokesperson for the Chinese Foreign Ministry tweeted. "we’re ready to fight till the end."
We’re prepared to fight until the bitter end if war is exactly what the U.S. desires, whether it be a tariff or trade war. https://t.co/crPhO02fFE
— Chinese Embassy in US (@ChineseEmbinUS) March 5, 2025
Trump's rigidity on tariffs poses a serious threat to traditional and crypto markets, BRN analyst Valentin Fournier wrote in a trading note.
"This aggressive stance risks isolating the U.S. and slowing regional economic growth," Adding that, he added, "If sustained, these policies could lead to higher inflation, reduced growth, and tighter liquidity—factors that would weigh heavily on Bitcoin and other digital assets."
Singapore-based crypto trading company QCP Capital has described crypto markets as "nothing short of a roller coaster," The firm’s daily note on markets. As long as trade wars and macroeconomic conditions remain viable, the firm said. "crypto remains highly linked to equities, with price action reflecting broader economic shifts."
The firm said it's looking ahead to see if any market moving news will come out of Friday's White House crypto summit, but it's not overly optimistic.
While it'll be the first event of its kind, "without any concrete executive orders, funding commitments, or congressional backing in place, the market remains in wait-and-see mode," QCP added that. "Investors view this as an asymmetric event with high stakes. Will it serve as the unexpected catalyst that sends prices soaring, or will it expose crypto’s fragility and trigger a deeper sell-off?"