The cryptocurrency market experienced significant gains today following U.S. President Donald Trump’s announcement of a temporary halt to reciprocal tariffs. On Wednesday, Trump confirmed a 90-day pause on tariffs for most countries, reducing them significantly to 10% during this period. The decision provided immediate relief to investors, positively affecting market sentiment.
This temporary tariff pause does not include China and instead, tariffs on Chinese imports increased dramatically to 125%, marking a further escalation in the trade conflict. China responded swiftly by imposing its own hefty tariffs of 84% on U.S. goods, deepening the economic tensions between the two countries.
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Cryptocurrency Prices Surge Amid Tariff News
Trump’s tariff announcement sparked a rapid surge in cryptocurrency prices. Bitcoin, the leading cryptocurrency, rose by 5.03% in the past 24 hours to reach $81,607.57, according to CoinMarketCap. Ethereum also saw strong upward movement, climbing by 7.69% to $1,596.98. Trading volumes for both assets surged, with Bitcoin’s 24-hour volume up by 29.32% and Ethereum’s by 19.99%.
Stock markets similarly reacted positively to the tariff update. The S&P 500 and Dow Jones Industrial Average each gained more than 5%, reflecting investors’ optimism regarding the reduced economic uncertainty. Meanwhile, the Nasdaq Composite outperformed, climbing over 8% as tech stocks benefited from renewed investor confidence.
Earlier this week, concerns about tariffs and potential trade disruptions led to substantial withdrawals from cryptocurrency exchange-traded funds (ETFs). CoinGlass reported investors had pulled $326 million from spot Bitcoin ETFs, with BlackRock’s Bitcoin ETF accounting for $253 million of this outflow. Trump’s tariff pause announcement has since reversed some of this investor pessimism.
Tariff Pause Provides Critical Market Stability
U.S. Treasury Secretary Scott Bessent highlighted the importance of this temporary tariff adjustment, emphasizing the significance of market stability. He pointed out that the clarity provided by Trump’s latest decision helps investors make informed decisions and reduce volatility in both traditional and crypto markets.
Overall, the cryptocurrency market’s value increased by 3.1%, reaching $2.63 trillion following Trump’s updated stance. Although the market valuation has not fully recovered to its previous peak of $2.74 trillion, today’s announcement significantly boosted investor confidence.
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