TLDR
Bitcoin price jumped 7% to $82,000 after Trump announced a 90-day pause on tariff hikes for most countries
China was excluded from the tariff pause, with US raising tariffs to 125% as Beijing retaliated with 84% duty on US imports
Other cryptocurrencies like Ethereum, XRP, Solana, and BNB also rallied up to 10%
Global crypto market capitalization increased 7% to reach $2.61 trillion
Dogecoin received additional boost from news of 21Shares applying to list a Dogecoin ETF in US markets
Bitcoin prices surged over 7% on Thursday, reaching $82,000 after US President Donald Trump announced a 90-day pause on planned tariff hikes for most countries. The move sparked renewed interest in cryptocurrencies and other risk assets.
The world’s largest cryptocurrency by market capitalization climbed as high as $83,453 in intraday trading before settling around $81,917, representing a 6.52% gain. Bitcoin’s market cap reached $1.61 trillion during the rally.
The price jump came as markets responded positively to Trump’s decision to temporarily roll back planned tariff increases on multiple nations. However, the relief was selective, as China was notably excluded from the pause.
While most countries received a reprieve, the US actually increased tariffs on Chinese goods to 125% after Beijing implemented retaliatory 84% duties on US imports. Additionally, a baseline 10% duty on all imports remains in place.
Altcoins Follow Bitcoin’s Upward Momentum
The rally wasn’t limited to Bitcoin. Other major cryptocurrencies also posted impressive gains as the entire market moved higher in response to the trade news.
Ethereum, the second-largest cryptocurrency, jumped 9.8% to reach $1,610.55. XRP saw even stronger performance, rising 10.1%.
Solana surged 10% while Binance Coin (BNB) added 5% to its value. These gains contributed to a 7% increase in the global cryptocurrency market cap, which reached $2.61 trillion.
Memecoin Dogecoin received an additional boost, rising nearly 10% after fund manager 21Shares announced it had applied to list an exchange-traded fund tracking Dogecoin in US markets. This development could potentially attract billions in institutional investment to the popular token.
Market Recovery After Recent Losses
The crypto market’s strong performance represents a recovery from recent losses, with Bitcoin now trading above a five-month low it hit earlier in April.
Analysts from CoinDCX Research Team noted that Bitcoin has risen above a key resistance level at $81,800. They suggested that despite attempts by bearish traders to restrict the rally, bullish momentum is expected to continue in the near term.
Some smaller cryptocurrencies posted even more dramatic gains. Fartcoin led with a 44% jump, followed by Flare with a 35% increase, while Pendle and Ondo both added 22%.
The price action in cryptocurrency markets generally tracked broader risk-driven financial markets, which also rallied following Trump’s tariff announcement. However, Bitcoin’s gains were somewhat more modest compared to those seen in equity and currency markets.
Crypto investors remain cautious about the potential impact of an escalating US-China trade war. The tariff exchange indicates growing tension between the world’s two largest economies, which could disrupt global supply chains and affect risk assets.
Market uncertainty persists regarding Trump’s trade policies. Until Wednesday afternoon, the president had shown no intention of backing down from his plans for reciprocal tariffs, leaving traders wary about potential policy shifts.
Another factor limiting Bitcoin’s upside was news that Strategy, reported to be the world’s largest corporate holder of Bitcoin, suffered a steep loss on the value of its digital asset holdings.
The 90-day extension provides countries more time to negotiate with the US and potentially reach new trade deals. This development has dampened immediate concerns about the impact of tariffs on supply chains and the broader economy.
Despite the positive market reaction, traders recognize that the trade conflict is far from resolved. The US and Chinese tariffs officially went into effect on Thursday, marking a new phase in trade tensions between the economic superpowers.
For cryptocurrency markets, the current rally offers a welcome reprieve after weeks of pressure. Whether this recovery can be sustained depends largely on how trade negotiations develop and whether market risk appetite continues to improve.
Cryptocurrency analysts remain divided on the long-term outlook, balancing positive technical signals against ongoing macroeconomic uncertainties including inflation, interest rates, and international trade conflicts.
