Investing.com-- Bitcoin advanced on Tuesday after tepid moves a day earlier as U.S. President Donald Trump indicated further tariff relief with a potential pause on auto levies.
The world’s largest cryptocurrency rose 2% to $86,025.0 by 09:40 ET (13:40 GMT).
Trump indicates auto tariff pause; US-Sino tensions persist
President Donald Trump on Monday indicated potential exemptions from the 25% tariffs on foreign vehicle imports, offering a reprieve to key trade partners such as Mexico and Canada.
The remarks, which come amid heightened global trade uncertainty, signaled a more selective approach to tariff enforcement and gave markets some reason for optimism.
The administration had already rolled back some planned tariffs, including exclusions for a range of electronics like smartphones and laptops, most of which are imported from China.
Despite the apparent softening in tone, investors remain wary. The Trump administration was exploring the possibility of new tariffs on semiconductor and pharmaceutical imports, two sectors deeply integrated into global supply chains.
While the exemptions may offer short-term relief, the broader outlook for trade policy remains uncertain, keeping financial markets on edge as they assess the evolving landscape.
Trade tensions with China remain elevated, with tariffs of up to 145% still in place on certain Chinese goods. Beijing has also retaliated with a 125% levy on U.S. goods.
US govt to buy Bitcoin using tariff revenue - reports
The Trump administration was reportedly considering using tariff revenue to purchase Bitcoin, aiming to boost reserves without borrowing more money or raising new taxes.
The move follows Trump’s executive order to build a strategic crypto reserve, media reports stated.
XRP ETFs likely to get approved before SOL, DOGE funds - analysts
XRP and Solana (SOL) are seen as front-runners for spot ETF approval in the U.S., driven by strong liquidity, according to analysts at crypto research platform Kaiko. XRP has recently overtaken SOL in 1% market depth and doubled Cardano’s ADA in liquidity on vetted exchanges.
Unlike Bitcoin, XRP lacks a developed futures market and is mostly traded offshore. Still, its U.S. spot market share has rebounded since the 2021 SEC lawsuit, while SOL’s share has declined.
Momentum for XRP has also picked up after the launch of Teucrium’s 2x XRP ETF, which posted over $5 million in day-one volume—its most successful launch.
“This underlying market’s improving dynamics and the launch of a 2x XRP ETF last week position XRP ahead of other assets when it comes to approval,” Kaiko analysts said in a note seen by CoinDesk.
“Although some tokens, such as LTC, which have very similar consensus mechanisms to BTC and share similarities to commodities, could also have a clear path to approval.”
A key SEC decision on Grayscale’s XRP ETF filing is due May 22.
Crypto price today: altcoins mixed amid tariff tensions
Altcoins were mixed on Tuesday, with most moving in tight ranges amid economic uncertainty.
World no.2 crypto Ether fell 1% to $1,645.89.
World no. 3 crypto XRP gained 1.7% to $2.17.
Solana added 0.6%, while Cardano fell 1.4% and Polygon climbed 1%.
Among meme tokens, Dogecoin lost 2.6%, while $TRUMP declined 4.7%.
Ayushman Ojha contributed to this report.