Crypto Market Rebounds Sharply After Trump’s Surprise Tariff Pause Spurs Investor Optimism
Bitcoin (BTC) rallied to nearly $82,000 early Thursday, leading a strong recovery across the crypto sector after U.S. President Donald Trump paused heightened tariffs for most countries. The move reversed market jitters sparked earlier in the week and reignited appetite for risk assets.
XRP and Ethereum (ETH) gained 12% each, while Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and BNB advanced up to 10%. The CoinDesk 20 Index jumped 7%, while total crypto market capitalization increased by 6%.
The surge was further driven by over $350 million in short liquidations — the highest level since March — as bears were forced to unwind their positions.
Mid-cap altcoins also saw outsized moves, with Bittensor (TAO), Sonic (S), and Flare (FLARE) rallying as much as 30%.
The broader market rally followed Trump’s announcement of a 90-day tariff freeze for non-retaliating nations, while increasing duties on Chinese imports to 125%. U.S. equities reacted strongly: the Nasdaq 100 soared 12% and the S&P 500 gained 9.5% — their biggest single-day jumps in over a decade.
Analysts suggested that traders are anticipating renewed trade negotiations and less aggressive policy posturing. “The tone has shifted dramatically, and markets are embracing the reprieve,” said BTSE COO Jeff Mei.
HashKey Capital’s Jupiter Zheng added, “With macro fears easing and regulatory clarity improving, the crypto market may have found a local floor.”
Despite the rally, market watchers remain cautious about potential retaliatory measures from China and further policy developments in the coming weeks.
