- Solana and Bitcoin prices surge as Trump administration signals potential exemptions from upcoming tariffs.
- Bitcoin rally appears driven by genuine spot demand rather than leveraged futures positions, according to analysts.
- Trump announces new 25% tariff on countries purchasing Venezuelan oil and gas, while Solana-based meme coins show signs of recovery.
Cryptocurrency markets rallied Monday with Solana posting significant gains as Bitcoin approached the $90,000 mark. Investors responded positively to reports that the White House may implement more targeted tariffs than initially feared, despite President Trump’s announcement of new restrictions on countries trading with Venezuela.
The Trump administration still intends to implement “reciprocal tariffs” on April 2—a date the president has dubbed “Liberation Day”—but certain countries and specific industries may be exempt from these broad import taxes, according to reports from Bloomberg and The Wall Street Journal published Sunday.
While the market initially welcomed this more targeted approach, President Trump added a new trade restriction on Monday. In a statement on Truth Social, he announced that starting April 2, countries purchasing oil and gas from Venezuela will face a 25% tariff on their U.S. trade.
Despite this new tariff announcement, Bitcoin’s price increased by 4.2% Monday, reaching approximately $88,500 according to CoinGecko. Simultaneously, Solana climbed to $142, representing an 8% gain over the previous 24 hours.
Analysts from Singapore-based trading firm QCP cautioned that while Bitcoin’s price is trending upward, this movement might not represent a sustained breakout. In a Monday analysis, they noted that “upcoming tariff escalations” could soon put pressure on risk assets again.
The same analysts observed that Bitcoin’s current “rally appears driven by genuine spot demand,” as opposed to leveraged positions in the Bitcoin futures market that “tend to unwind abruptly on liquidations.” This distinction suggests a potentially more sustainable price movement.
Data from CoinGlass shows that the value of outstanding Bitcoin futures contracts increased to $53 billion Monday, though this remains lower than levels seen a month ago. Meanwhile, crypto investment products ended a five-week losing streak, according to CoinShares.
Greg Magadini, director of derivatives at crypto data provider Amberdata, explained to Decrypt: “When the market becomes very bullish, traders will leverage their capital to become ‘extra long’ via futures, perps and options. This can make the market vulnerable to sharp pullbacks as positions are financed by thin layers of capital.”
Solana’s ecosystem is showing broader signs of recovery, with some previously battered meme coins experiencing significant rebounds. Fartcoin (FARTCOIN), a Solana-based token, rose 15% to $0.56, reaching its highest price in nearly six weeks according to CoinGecko.
President Trump himself may have contributed to the meme coin momentum. On Sunday, he referenced his own Solana-based meme coin on Truth Social. The token traded up 3% Monday, priced around $11.81 according to CoinGecko.
The combination of potentially narrower tariffs and continued cryptocurrency adoption has created a positive short-term outlook for digital assets, though market participants remain watchful of the upcoming April 2 “Liberation Day” and its potential impacts on global markets.
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