TLDR
- Bitcoin surged to nearly $82,000 after Trump reversed global tariff decision, pausing tariffs for 90 days on all countries except China
- XRP and Ether led gains among major cryptocurrencies with 12% increase, while Cardano, BNB, Solana and Dogecoin rose about 10%
- Trump raised tariffs on Chinese imports to 125% effective immediately
- Over 75 countries contacted US officials to discuss trade matters
- US stocks staged their best rally since 2008 with S&P 500 rising 9.5% and Nasdaq surging 12%
Cryptocurrency markets surged on Thursday as Bitcoin rose to nearly $82,000, leading gains across digital assets after President Donald Trump announced a pause on global tariffs. The decision sparked relief in broader equity markets, with both crypto and stock indices posting their strongest rallies in years.
Trump announced a 90-day pause on tariffs for most countries while simultaneously raising tariffs on Chinese imports to 125%. The announcement came just hours after goods from nearly 90 nations had become subject to stiffer tariffs imposed by the United States.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on Truth Social. He added,
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Crypto Market Response
XRP and ether (ETH) led gains among major cryptocurrencies with a 12% surge. Cardano’s ADA, BNB Chain’s BNB, Solana’s SOL and dogecoin (DOGE) increased as much as 10%. The overall cryptocurrency market capitalization rose by 6%.
Crypto-tracked futures showed short liquidations of over $350 million, the highest since early March. These liquidations helped ease losses from earlier in the week when bitcoin had dropped to nearly $75,000.
Such liquidation events often present market buying opportunities. They can signal an overstretched market that indicates a price correction has occurred.
Mid-cap tokens also posted strong gains. Bittensor’s TAO, Sonic’s S and Flare’s FLARE rose as much as 30%, leading growth among tokens below a $5 billion market cap.
Global Market Impact
The tariff decision had an immediate and powerful effect on stock markets. US stocks staged their best rally since 2008, with the S&P 500 Index soaring 9.5% and rebounding from bear-market territory. The tech-heavy Nasdaq 100 surged 12%.
Major tech stocks recorded strong gains with Tesla jumping 14%, Nvidia rising 12%, and Apple climbing 11%. Other tech giants including Microsoft, Meta, and Amazon each rose about 8%, while Google added 6%.
Trump’s decision to pause tariffs was influenced by more than 75 countries contacting US officials to negotiate after he unveiled his new tariffs last week. During this 90-day period, a reduced reciprocal tariff of 10% will be in effect for most nations.
Commerce Secretary Howard Lutnick confirmed he was present when Trump drafted the announcement. “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick wrote on X. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.”
US-China Trade Tensions
While Trump paused most global duties, his decision to raise tariffs on China to 125% marks an escalation in US-China trade tensions. The move came after China earlier on Wednesday said it would increase its tariff rate for imports from the US to 84%.
“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote in his statement.
When asked about the situation, Treasury Secretary Scott Bessent declined to call it a US-China trade war. He did say, “China is the most imbalanced economy in the history of the modern world, and they are the biggest source of the US trade problem.”
Market analysts remain cautious despite the rally. “The market is rallying in response to anticipation that most trading partners will negotiate trade deals with the US, avoiding a full-fledged trade war,” Jeff Mei, COO at BTSE, told CoinDesk. “That being said, continued tariffs against China and vice versa will lead to a realignment of global trade that could drastically change how the world operates.”
Jupiter Zheng, partner at HashKey Capital, suggested markets might be reaching a local bottom.
“The upswing was fueled by optimism that the worst may be behind us. While potential headwinds remain, such as retaliatory tariffs from China in response to Trump’s 125% increase, the start of negotiations with other countries offers some hope,” he said.
Trump’s announcement mentioned that countries reaching out to negotiate “have not, at my strong suggestion, retaliated in any way, shape, or form against the United States,” which factored into his decision to pause the higher tariffs.
The 90-day pause provides a window for negotiations with the many countries that contacted US representatives to discuss trade, tariff barriers, currency manipulation, and non-monetary tariffs.
