Investing.com-- Bitcoin rose more than 1% 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 1.1%  to $85,478.1 by 02:23 ET (06:23 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.

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 rose 0.9% to $1,638.57.

World no. 3 crypto XRP gained 0.8% to $2.1378.

Solana declined 0.7%, while Cardano and Polygon were largely unchanged.

Among meme tokens, Dogecoin lost 3.3%, while $TRUMP declined 3.8%.