Tokyo, Japan – Financial markets in Asia showed positivity on Monday as reports suggested that the upcoming round of tariffs by President Trump could be less severe than anticipated. This news helped drive Bitcoin to trade at around $86,500, up 2.7% in a 24-hour period. Solana’s SOL token also saw an increase, trading nearly 6% higher at $138.
In addition to the digital asset market, traditional financial markets also saw a boost with futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq all rising over 0.5%. The VIX index, a measure of Wall Street’s fear level, slipped 2.5% to 18.88 points. Reports stating that Trump’s planned tariffs might be more targeted and that some countries could be exempt contributed to the positive sentiment in the markets.
This optimism marks a shift from February when Trump’s tariffs caused a significant downturn in both stock and crypto markets. Bitcoin experienced a 17.6% drop, falling to lows below $80,000. However, the Federal Reserve’s recent decision to revise inflation forecasts higher, while also lowering growth figures, has helped soothe investors’ concerns. The Fed described the inflationary effects of tariffs as temporary and maintained projections for two rate cuts this year, providing support for risk assets like cryptocurrencies.
The combination of Fed actions and potential reductions in tariffs has reignited a bullish outlook in the market. BitMEX co-founder Arthur Hayes expressed confidence in Bitcoin reaching $110k before retesting $76.5k, citing the Fed’s shift from quantitative tightening (QT) to quantitative easing (QE) for treasuries. Other key events to watch include Friday’s PCE reading and upcoming testimonies from SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould before the Senate Banking Committee on March 27.