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Bitcoin prices soared early Thursday, climbing to nearly $82,000 after President Donald Trump announced a major policy reversal on global tariffs. The shift brought relief to both equity and crypto markets, igniting a broad rally.
Trump’s announcement included a 90-day pause on steep “reciprocal” tariffs for most countries, while simultaneously raising tariffs on China to 125%. He declared on Truth Social, “I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately… I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
This unexpected move boosted investor confidence. The S&P 500 gained 9.5%, its best rally since 2008, and the Nasdaq 100 surged 12%, signaling renewed optimism in traditional markets that spilled over into digital assets.
Crypto Market Response
The crypto market followed suit with strong upward momentum:
- Bitcoin (BTC): Rose to nearly $82,000
- XRP: “Jumps to $2”, leading major altcoin gains with a 12% surge
- Dogecoin (DOGE): “Surges 10%”
- Ethereum (ETH): Gained 12%
- Other altcoins like Cardano (ADA), BNB, and Solana (SOL) also posted up to 10% increases
- Overall crypto market cap rose by 6%
- CoinDesk 20 (CD20) index was up 7%
Futures data revealed short liquidations of over $350 million, the largest since March. These liquidation spikes typically indicate market corrections and buying opportunities.
Midcap tokens also saw substantial growth: Bittensor’s TAO, Sonic’s S, and Flare’s FLARE rose up to 30%.
Analyst Reactions
Jeff Mei, COO at BTSE, explained, “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.” However, he cautioned that the continued tariff tensions between the U.S. and China could reshape global trade dynamics in the coming months.
Jupiter Zheng, partner at HashKey Capital, added, “The upswing was fueled by optimism that the worst may be behind us… it’s possible that Bitcoin and other cryptocurrencies have reached a bottom.” He also suggested the industry might not yet have priced in all regulatory improvements and trade developments.
Backdrop of Global Trade Tensions
This crypto rally came against a backdrop of intensifying trade tensions. Earlier Wednesday:
- China raised tariffs on U.S. goods to 84%
- EU approved a 25% tariff on $23 billion worth of U.S. products
- The White House confirmed the reciprocal tariffs implemented on April 2 were paused, while the 10% baseline remains
Despite rising Chinese tariffs and reciprocal measures from other nations, the temporary tariff pause for most countries seems to have calmed market fears — at least for now.
