Bitcoin Price Surges to $85,500 on New Trump Tax Cut Hopes
Investing.com – Bitcoin made a strong rally in Tuesday morning trading, surpassing $85,500 as US President Donald Trump hinted at the possibility of suspending auto import tariffs and reducing other tariffs.
At 02:23 ET (06:23 GMT), Bitcoin (BTC) was up 1.1%, trading around $85,478.1, continuing a slight gain from the previous day as the cryptocurrency market reacted positively to the softening signals from the White House.
Trump Signals Delay in Auto Tariffs – Markets Spark Optimism
In his remarks on Monday, Trump said he might waive the 25% tariff on imported cars, a move seen as a “temporary amnesty” for major trading partners such as Canada and Mexico.
Not only stopping at the auto industry, the Trump administration also withdrew some planned tariffs, especially on consumer electronics such as smartphones and laptops, which are mainly imported from China.
However, investors are still cautious. The US government is still considering imposing new tariffs on semiconductors and pharmaceuticals - two key areas in the global supply chain.
Trade tensions between the US and China remain high, as 145% tariffs on some Chinese goods have not been removed, while China has responded with a 125% tariff on US goods.
The US may use tax revenue to buy Bitcoin - leaked information causes a stir
A hot spot that has excited the market is information from media reports that the US government is considering using tax revenue to buy Bitcoin, as part of a digital asset reserve strategy.
This is seen as a follow-up to Trump’s executive order to establish a strategic cryptocurrency reserve, opening up the possibility of the government actively participating in the crypto market without raising taxes or debt.
Altcoins slightly fluctuate – Dogecoin and $TRUMP plunge
Amid market uncertainty, altcoins traded mixed:
Ethereum (ETH) rose 0.9% to $1,638.57
XRP rose 0.8% to $2.1378
Solana (SOL) fell slightly by 0.7%, while Cardano (ADA) and Polygon (MATIC) were almost flat.
In the meme coin group, Dogecoin fell 3.3%, while $TRUMP Token lost 3.8% of its value.
What’s the next investment opportunity?
While the crypto market is rocked by political and trade factors, investors are still looking for the “next star.” InvestingPro’s AI has found several stocks that are up more than 150% in 2024 alone, with many up more than 30%.
The AI portfolio includes growth stocks, Dow stocks, tech stocks, and mid-caps – designed to catch big trends before the market does.
Will Bitcoin or an altcoin be the next leader? Or is it an undervalued stock quietly preparing to take off?