Bitcoin jumps over 8% to $81,700 after Trump announces 90-day tariff pause; Ethereum, XRP gain over 12%
Crypto Markets Surge on Trade War Thaw Hopes
The cryptocurrency market experienced a significant upward jolt today, driven by positive macroeconomic news. Bitcoin (BTC), the leading cryptocurrency, surged impressively, breaking key resistance levels following an announcement from former US President Donald Trump regarding international trade tariffs.
Trump Announces Tariff Pause, Igniting Market Rally
Reports and social media updates indicate that Donald Trump announced a temporary 90-day pause on tariffs for countries that have recently lowered their own tariff barriers. While details are emerging, this move is being interpreted by the market as a potential de-escalation in global trade tensions, particularly concerning the long-standing US-China trade conflict, even if China might initially be excluded from this specific pause.
This unexpected announcement acted as a significant catalyst, injecting optimism into markets often sensitive to geopolitical and economic shifts. Cryptocurrencies, increasingly viewed by some investors as risk-on assets, reacted swiftly and positively.
Bitcoin Leads the Charge, Altcoins Follow
Bitcoin saw a dramatic price increase, jumping over 8% to reach highs above the $81,700 mark, with some exchanges even reporting peaks momentarily exceeding $82,000. This move represents a strong recovery and pushes Bitcoin back into a critical price zone, exciting traders and investors alike.
Ethereum and XRP Post Double-Digit Gains
The positive sentiment wasn’t confined to Bitcoin. Major altcoins also experienced substantial gains:
- Ethereum (ETH): The second-largest cryptocurrency surged over 12%, breaking the $1,600 level.
- XRP: Similarly, XRP enjoyed gains exceeding 12%, reflecting a broad-based rally across the crypto space.
Social media platforms, particularly Crypto Twitter, were buzzing with activity. Traders noted the sharp reversal, with comments highlighting how the news “cooked weak hands” and brought back a sense of optimism, suggesting that a potential end to the broader trade war could lead to even more significant gains.
Why Do Tariffs Affect Crypto Prices?
While seemingly unrelated, global trade policies and macroeconomic events can significantly influence cryptocurrency markets:
- Risk Appetite: Easing trade tensions often improves global economic outlook, increasing investors’ appetite for riskier assets, which can include cryptocurrencies.
- Market Sentiment: Positive macroeconomic news can create a ‘risk-on’ environment, spilling over into speculative markets like crypto.
- Capital Flows: Shifts in global economic policy can influence capital flows between traditional markets and alternative investments.
The dynamic nature of the crypto market means prices react quickly to global events. Today’s rally underscores how sensitive digital assets can be to shifts in international relations and economic policy announcements.
What’s Next?
While the 90-day pause is a temporary measure, it provides a window of reduced trade friction. Investors will be closely watching for further developments in US trade policy and its impact on global markets. The strong reaction in the crypto market highlights its growing interconnection with traditional finance and global events. As the situation evolves, further volatility can be expected.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and carry significant risk.
