Major cryptos rose on Tuesday amid an uptick in investor sentiment that tariffs imposed by U.S. President Donald Trump on his “Liberation Day” Wednesday would be less severe than anticipated, but analysts remain wary about a potential trade war’s impact on markets. 

Bitcoin’s price was recently trading at about $84,900, a more than 2.5% gain over the past 24 hours, according to data provider CoinGecko. The coin briefly touched over $85,000, for the first time since last week. 

“Traders are buzzing over Trump’s tariff chatter for April 2 and are leaning to the hint that there will be softer policies than expected,” Sid Powell, CEO & co-founder of Maple said in an email to Decrypt, noting that “tariffs always shake things up.

“After weeks of tanking prices, any relief like this could spark FOMO and a quick bounce-back for BTC,” he continued. 

But Powell added warily: “Risk assets like crypto might take a beating if tariffs end up boosting the dollar or slowing global growth. While volatility is a lock, tariffs always shake things up, and it’s a wait and see moment for investors to know if their prediction of softer policies is correct.”

BTC’s rise comes as stocks and other “risk-on” assets have fluctuated in recent weeks with investors largely fretting over Trump’s erratic tariff pronouncements. The president, who has indicated repeatedly that he would apply sweeping measures on the U.S.’s major trading partners, on Tuesday, said he had settled on a plan. Markets seemed to appreciate the likely resolution of an issue that has lingered. 

Major altcoins, including such as Ethereum, Dogecoin, and Solana—are also trading higher. ETH was recently priced at $1,917, up 4% over the past day; DOGE stood at a little over $0.17—a 3% rise. Cardano was up 2.5%. 

Those coins and Bitcoin have been swooning in recent weeks as fears mounted that a global trade war would trigger a period of stagflation—a toxic mix of declining growth and rising inflation—with recent economic indicators pointing downward. On Tuesday, the March Purchasing Managers’ Index showed prices increasing at their fastest rate since mid-2022 and factory activity contracting. Last week, the Conference Board’s consumer confidence index plunged to its lowest level in four years. 

“From a risk management perspective, it makes sense for the market to remain on the sidelines, awaiting greater clarity on the impact of Trump’s tariffs,” Pedro Lapenta, head of research at Hashdex’s head of research Pedro Lapenta told Decrypt, adding that “there will be continued volatility in global markets as the tariffs take shape.”

He added optimistically that Tuesday’s crypto price spike suggested that “the market is shifting toward a buyer’s mode and anticipates a less severe impact from tariff announcements.” Institutional demand was “picking up,” he noted.

Other risk-on markets inched up on Tuesday with the tech-focused Nasdaq and S&P 500 rising .87% and .38%. But traditional safe-haven gold also ticked up, continuing its recent path. 

Trump will announce his tariffs with immediate effect in a Rose Garden ceremony at the White House on Wednesday. He has indicated that he is unconcerned about their short-term impact. 

In a message to Decrypt, Joe DiPasquale, CEO of crypto fund manager BitBull Capital, wrote that investors had grown more optimistic that tariffs would be more targeted, excluding some countries and avoiding cumulative levies on specific goods.

“We feel this helped lead the modest recovery in crypto markets,” DiPasquale wrote. “However, the overall market remains cautious, as the full impact of the tariffs will depend on their final scope and implementation. Therefore, while there is some optimism, the situation remains fluid, and investor sentiment could shift as more details emerge.”

Edited by James Rubin