Markets opened on a positive note Monday as investors reacted to reports that Donald Trump’s upcoming tariffs, scheduled for April 2, may be less aggressive than expected. According to media sources, the measures will be more targeted, with some countries exempt and existing levies on metals potentially non-cumulative.

Cryptocurrencies responded with gains: Bitcoin (BTC) rose 2.7% to around $86,500, Solana (SOL) surged nearly 6% to $138, and payments-focused XRP climbed 2.5%, breaking above its 50-day moving average and extending a two-week uptrend.

Futures tied to the S&P 500, Dow Jones, and Nasdaq also climbed over 0.5%, while the VIX volatility index fell 2.5% to 18.88 points. Chinese markets reversed early losses.

Market sentiment, previously shaken by tariff threats in February that drove Bitcoin down 17.6% to below $80,000, has now turned bullish. Investors were encouraged by the Fed’s dovish stance, which described the inflation from tariffs as “transitory” and maintained a forecast of two rate cuts this year.

“The Fed is moving from QT to QE for treasuries, and tariffs don’t matter because it’s ‘transitory inflation’. JAYPOW told me so. I bet $BTC hits $110k before it sees $76.5k again,” wrote BitMEX co-founder and Maelstrom CIO Arthur Hayes on X.

Key upcoming events this week include Friday’s PCE data — the Fed’s preferred inflation measure — and the Senate Banking Committee hearings for SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould on March 27.