Bitcoin Rises to $85K Amid Trump Tariff Plans and Mining Investment

Bitcoin bounced back on Tuesday, rising 3.4% to $85,290.2, as broader financial markets showed signs of recovery following a turbulent first quarter of 2025. The world’s largest cryptocurrency had shed about 11% in Q1 and remains 24% below its January peak, weighed down by profit-taking, investor unease over President Donald Trump’s crypto strategy, and growing economic uncertainty tied to trade tensions.

Markets are now bracing for Trump’s upcoming tariff announcement on April 2—dubbed “liberation day”—which targets sectors including semiconductors, pharmaceuticals, and commodities. Although specifics remain unclear, speculation over the economic fallout has dampened risk appetite and boosted fears of a U.S. recession. As a result, speculative assets like Bitcoin have underperformed the S&P 500 and Nasdaq (IXIC) this year.

Despite his pro-crypto image, Trump’s recent policy moves have done little to lift crypto prices. His administration has proposed a strategic reserve using government-held Bitcoin, and appointed pro-crypto figures to key regulatory roles, especially within the SEC. However, the crypto market remains cautious.

Adding to the headlines, a company run by Trump’s sons, Eric and Donald Jr., will acquire a 20% stake in American Bitcoin, a mining firm largely owned by Hut 8. The deal follows Trump’s recent support for other blockchain initiatives, including the memecoin $TRUMP and DeFi platform World Liberty Financial.

Altcoins followed Bitcoin’s lead on Tuesday. Ethereum gained 5% to $1,913.26, XRP rose 2.6% to $2.14, Cardano added 3.7%, and Solana edged up 0.8%. Polygon slipped 0.1%. Among meme tokens, $TRUMP rose 2.8%, while Dogecoin jumped 4.3%.

Crypto markets remain volatile, with investors closely watching Trump’s trade policies and broader economic signals for direction.