Bitcoin Surges as Tariff Delay, Reserve Anticipation Boost Market; Open Interest Remains Subdued

Bitcoin (BTC) has decisively broken through the $90,000 barrier, currently trading around $91,600, marking a significant 4.5% surge in the past 24 hours. Ethereum (ETH) is mirroring Bitcoin's gains, currently priced at $2,286, up over 5%, per Coinmarketcap data.

"This bullish momentum can be attributed to a combination of factors: President Trump's delayed tariff implementation and growing anticipation surrounding a potential US strategic cryptocurrency reserve," BRN analyst Valentin Fournier said.

Investor sentiment appears to have been buoyed by President Trump’s announcement on Wednesday delaying the imposition of 25% tariffs on auto imports from Canada and Mexico. This move, granting a one-month exemption, has eased market concerns about a potentially damaging trade war. "The delay signals a less confrontational stance on trade than initially feared, reducing pressure on the US dollar and prompting a renewed appetite for risk assets, including cryptocurrencies," Fournier added.

The US Dollar Index (DXY) has consequently fallen to its lowest level since November, a historically bullish indicator for Bitcoin.

Adding further fuel to the fire is growing anticipation around a US strategic cryptocurrency reserve. Commerce Secretary Howard Lutnick stated in an interview earlier this week that President Trump is expected to unveil plans for such a reserve at the upcoming White House crypto summit on Friday . Lutnick hinted that Bitcoin would be central to this strategy, potentially enjoying a "unique status" within the framework.

While the current market rally is undeniable, a notable undercurrent of caution persists. Bitcoin's open interest, the total number of outstanding futures contracts, has fallen to its lowest level since August 2024, according to Glassnode data. Historically, low open interest often precedes periods of consolidation or signifies that the market is poised for a significant move, as reduced speculation can create a vacuum for more decisive price action.

Despite the price surge, this low open interest suggests that many traders remain hesitant to fully embrace the current rally, perhaps awaiting more concrete details on both the tariff situation and the strategic reserve initiative.

Looking ahead, the market's next major move could hinge on the Federal Reserve's monetary policy trajectory. Current futures markets, according to the CME FedWatch Tool, are increasingly pricing in up to three interest rate cuts this year, a significant shift from previous expectations of just one. Should the Federal Reserve adopt a more dovish stance, it could provide further tailwinds for risk assets like Bitcoin.

All eyes are now on Friday's White House crypto summit and any further pronouncements from the Trump administration regarding its cryptocurrency policies and trade agenda.