- Bitcoin surged 4.6% to $81,300 after President Trump announced a 90-day pause on most trade tariffs, excluding China.
- This news boosted both the crypto and stock markets, with Ethereum, XRP, and major stock indices also seeing significant gains.
In a surprise move, U.S. President Donald Trump announced on Wednesday that he is pausing most of the trade tariffs for 90 days, except on China, which led to an immediate surge in both cryptocurrency and stock market prices. The announcement created optimism among investors, triggering significant price jumps across various assets.
Bitcoin Soars Following Trump’s Trade Update
Bitcoin experienced a remarkable 4.6% spike in just under an hour, reaching an impressive price of $81,300. Ethereum wasn’t far behind, climbing 6.1% to hit $1,600, while XRP soared by 10%, reaching $2.03. The surge in digital currencies highlights investor optimism fueled by the trade pause announcement, with the crypto market increasing by 3.1%, now valued at $2.63 trillion.
Stocks Respond Positively
The stock market also saw substantial gains after Trump’s announcement. The S&P 500 and Dow Jones Industrial Average each jumped by over 5%, while the Nasdaq, driven largely by tech stocks, surged by over 8%. The decision to lower reciprocal tariffs to 10% and halt them temporarily brought a sense of relief to the market, offering a brief window of certainty in an otherwise volatile trade environment.
Trump’s Trade War Strategy: A Mixed Approach
While most countries will benefit from this temporary pause, China is notably excluded. As part of the ongoing trade battle, the U.S. has imposed a hefty 125% levy on Chinese goods, which was immediately enacted. This move escalates the tensions between Washington and Beijing, further intensifying the tit-for-tat dynamic. However, U.S. Treasury Secretary Scott Bessent noted that this new development provides more clarity, offering a temporary “floor” for the market and reassuring investors.
The Tariff Pause: Market Reactions and Future Outlook
Despite the tariff pause, concerns remain over the broader economic impact, with investors pulling $326 million from Bitcoin ETFs as a precautionary measure. Nevertheless, the crypto market has shown resilience, and analysts are hopeful that the temporary relief will help stabilize the global economic outlook.
In the meantime, the pause on tariffs has brought a much-needed sense of stability to both traditional and crypto markets, leaving investors to watch how this will influence broader market movements in the coming weeks.
