Bitcoin has surged beyond the $90,000 mark, driven by renewed investor optimism following President Donald Trump’s decision to postpone tariffs on Canadian and Mexican auto imports. The announcement, reported by Reuters on March 6, provides a one-month exemption for U.S. automakers, easing concerns about economic disruption and boosting risk sentiment across financial markets.

The decision follows a meeting between Trump and top executives from Ford, General Motors, and Stellantis, as confirmed by White House press secretary Karoline Leavitt. Investors interpret the delay as a sign that the administration may not aggressively pursue tariffs, reducing uncertainty and encouraging market participation.

According to crypto.news, Bitcoin is currently trading at $91,651, marking a 5% increase in the past 24 hours. The broader cryptocurrency market also saw gains of around 2% as confidence in risk assets improved. Despite this rally, the Fear and Greed Index remains in the “Extreme Fear” zone at 25 points, though it has risen by five points, suggesting cautious optimism among investors.

Crypto-related stocks mirrored Bitcoin’s rise, with Coinbase (COIN) climbing 4% and MicroStrategy (MSTR) surging 12%. Meanwhile, the U.S. dollar index (DXY) dropped to its lowest level since November, a historically bullish signal for Bitcoin. A weaker dollar often leads to increased demand for alternative assets like cryptocurrencies, further supporting Bitcoin’s upward momentum.

Despite Bitcoin’s strong price action, open interest in Bitcoin futures remains at its lowest level since October 2024, indicating that traders are still hesitant to take larger positions. This cautious approach suggests that while Bitcoin’s price is climbing, many market participants are waiting for additional confirmation before making substantial commitments.

Blockchain analytics firm Santiment noted continued growth in Bitcoin’s network, with an increasing number of smaller wallets over the past month. However, some larger holders have recently taken profits, which may indicate temporary selling pressure. Analysts believe that a rebound in large Bitcoin holdings could signal renewed confidence and potentially trigger another breakout.

Looking ahead, traders are closely monitoring Federal Reserve policy decisions. According to the CME FedWatch Tool, futures markets now anticipate up to three interest rate cuts this year, a notable shift from earlier expectations of just one. Bitcoin’s next major price move could be influenced by the Fed’s actions and the broader economic landscape.

With improved sentiment and strong technical indicators, Bitcoin’s bullish trend appears intact, though investor caution persists. Whether Bitcoin can sustain its momentum will depend on evolving market conditions and macroeconomic developments.