Bitcoin Climbs to $85.4K on Tariff Relief Hopes and U.S. Crypto Reserve Plans

Bitcoin rose over 1% early Tuesday, trading at $85,478.1 as of 02:23 ET, after U.S. President Donald Trump hinted at a possible pause on auto tariffs, providing some relief to jittery markets. This uptick followed muted movement the previous day, with the broader crypto market reacting cautiously to evolving trade developments.

Trump's comments suggested that foreign auto imports, particularly from Mexico and Canada, could be exempt from the steep 25% tariffs, signaling a more selective trade strategy. These statements came alongside the administration’s earlier move to exclude certain electronics, such as smartphones and laptops—mostly imported from China—from planned levies.

However, investors remain cautious. Despite the temporary relief, uncertainty lingers as the administration considers fresh tariffs on semiconductors and pharmaceutical products—industries critical to global supply chains. Tariffs of up to 145% on some Chinese goods remain in place, with China maintaining a retaliatory 125% tariff on U.S. imports.

In a surprising twist, reports emerged that the U.S. government is weighing the use of tariff-generated revenue to purchase Bitcoin, aiming to build a strategic crypto reserve without increasing debt or taxes. This initiative aligns with a recent executive order from Trump focused on strengthening the nation's digital asset reserves.

Meanwhile, major altcoins saw mixed performance. Ethereum rose 0.9% to $1,638.57, while XRP gained 0.8% to reach $2.1378. Solana dipped 0.7%, and Cardano and Polygon remained largely flat. Among meme coins, Dogecoin dropped 3.3%, and the $TRUMP token declined 3.8%.

As tariff developments continue to influence market sentiment, crypto investors are closely watching for policy shifts that could shape digital asset adoption and volatility in the coming weeks.