- Trump’s 90-day tariff pause, excluding China, sparked a surge in both cryptocurrency and stock markets, boosting investor confidence.
- Bitcoin and Ethereum saw significant gains, while the Dow Jones soared by over 2,000 points in response.
In a dramatic move, former President Donald Trump announced a 90-day pause on tariffs for most countries, excluding China. This unexpected shift in trade policy ignited a surge in both the cryptocurrency and stock markets, signaling a wave of optimism among investors.
The tariff relief, shared via Truth Social, immediately impacted financial markets, with stocks and digital currencies soaring. Trump’s decision to reduce tariffs to 10% for all countries—except China, which now faces a 125% increase—set the stage for a notable market rebound. Bitcoin, Ethereum, and other cryptocurrencies saw impressive gains. Bitcoin jumped 5.6%, reaching $81,600, while Ethereum rose 6.1% to $1,600. XRP surged by 10%, hitting $2.03. The total value of the cryptocurrency market swelled to $2.7 trillion, a clear indication of investor confidence amid a shift in trade policy.
Also read: Chainlink Price Prediction 2025: Why LINK is Poised for Major Growth
The U.S. stock markets also reacted favorably. The Dow Jones soared by 2,000 points, while the S&P 500 gained over 5%, and the Nasdaq rose by 8%. This surge reflected the optimism that the tariff pause could alleviate trade tensions, at least in the short term, allowing for broader economic growth.
For Bitcoin, the rally was particularly significant, as it faced crucial resistance levels. With the price edging closer to breaking through the $82,000-$83,000 resistance zone, Bitcoin’s momentum could push it even higher, with potential to reach $85,000-$86,000. However, market experts caution that if Bitcoin fails to surpass these levels, there may be a risk of price consolidation or a pullback.
While Trump’s decision to exclude China from the tariff pause raised questions about the ongoing U.S.-China trade tensions, the overall market response highlighted the broader relief felt by investors. The move has shifted market sentiment, offering a glimmer of hope for stability and growth in both traditional and digital assets.
As the 90-day tariff reprieve continues, the financial world will be closely watching to see if these gains hold, or if the markets revert as trade conflicts resurface. One thing is clear: Trump’s tariff pause has sparked a significant uptick in both cryptocurrency and stock market activity.
