Bitcoin, XRP, and Solana rise on tariff news, boosting market optimism as investor confidence grows - IcoHolder.

Bitcoin, XRP, and Solana experienced notable gains early Monday, following reports suggesting that President Trump’s upcoming tariffs, set to take effect on April 2, may not be as aggressive as initially feared. This shift in expectations sparked optimism across financial markets, including cryptocurrencies, and helped improve market sentiment.

In the wake of the tariff news, Bitcoin surged 2.7%, trading at $86,500, while Solana (SOL) saw an impressive 6% jump to $138. XRP also climbed, rising 2.5% to $2.44, maintaining its position above the 50-day moving average after two weeks of positive price action. This rally extended beyond crypto, as U.S. stock futures, including the S&P 500 and Nasdaq, rose by 0.5%, and the VIX (a measure of market fear) dropped by 2.5%.

Concerns over Trump’s planned tariffs had previously caused a significant dip in the market, with Bitcoin losing nearly 17.6% in February. However, new reports indicate that the tariffs may be more targeted than initially anticipated, with certain countries potentially exempt and additional levies on steel and metals possibly not cumulative. This news has provided much-needed relief to investors, sparking renewed optimism across both equities and crypto markets.

The Federal Reserve’s recent update on its economic outlook has contributed to the positive sentiment. While inflation expectations have been raised, the Fed reaffirmed its plan for two interest rate cuts this year and downplayed concerns that tariffs would cause long-term inflation. This has increased investor confidence in riskier assets like Bitcoin.

Arthur Hayes, co-founder of BitMEX, is optimistic about Bitcoin’s future, forecasting that it could reach $110,000 before potentially falling back to $76,500. He attributes the strength of the crypto market to the Fed's shift from tightening to easing policies, which could help offset inflation fears.

While the market has rallied on the tariff news, analysts caution that unexpected developments could still derail the positive trend. Some experts remain skeptical about Trump’s “Liberation Day” tariff plan. Crypto expert Peter Schiff, for instance, argues that instead of revitalizing America’s economy, the tariffs may expose the country’s deep reliance on global productivity, ultimately highlighting economic weaknesses.

Investors are now focused on two key events that could influence market direction in the coming days. On March 27, the Senate Banking Committee will question SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould, which could signal shifts in regulatory policies. Additionally, Friday’s Personal Consumption Expenditures (PCE) reading, a key inflation measure for the Fed, could provide more clarity on future monetary policy.

With tariff fears easing and the Federal Reserve staying accommodative, the crypto market is showing signs of renewed momentum, offering a potential upside in the near term.