Markets roared back on Thursday after U.S. President Donald Trump announced a surprise 90-day pause on new trade tariffs, triggering a dramatic rebound across both crypto and equity markets.
Bitcoin (BTC) jumped nearly 9% to briefly trade at $82,500, before settling around $81,700 over the past 24 hours. Ethereum (ETH) surged 13.4% to $1,611, while XRP followed with a 13% gain. Several altcoins posted double-digit increases as well.
The announcement came late Wednesday, just as markets had priced in further trade escalations. Trump’s temporary tariff freeze reversed several days of steep global losses, giving traders a breather and sparking renewed investor optimism.
Tariff Relief for Most — But China Still Hit With 125% Tariffs
Despite the broad-based pause, the U.S. confirmed it would raise tariffs on Chinese imports to 125%, citing Beijing’s failure to follow “global market rules.”
In response, China had earlier raised levies on U.S. goods to 84%, deepening trade tensions between the world’s two largest economies.
While the White House walked back additional duties on most imports, existing tariffs on autos, steel, and aluminum will remain intact. A 10% blanket tariff on a wide range of foreign goods also stays in place.
Wall Street and Crypto Markets Post Historic Gains
The S&P 500 closed up 9.5%, logging its biggest single-day gain since October 2008. The crypto sector followed closely behind, with the total crypto market cap climbing 5.9% to reach $2.68 trillion, according to CoinGecko.
Among altcoins, Flare (FLR) and Ondo (ONDO) led the rally, soaring 34.9% and 21% respectively.
Volatility Triggers Nearly $500M in Liquidations
The sudden rally came at a cost for many traders. According to Coinglass, over 131,555 traders were liquidated in the past 24 hours, amounting to $487.1 million in losses.
- Bitcoin: $185.2 million liquidated
- Ethereum: $138.8 million liquidated
Markus Thielen, head of research at 10X Research, cautioned that the bounce may be temporary. “Structural headwinds still exist and could become more apparent during the upcoming U.S. corporate earnings season,” he told Cryptonews.
Outlook: Relief Rally or Start of a Recovery?
While the short-term boost was welcomed by markets, analysts remain divided on whether this marks the beginning of a sustained rebound or just a brief rally amid broader macroeconomic uncertainty.
With tariff tensions unresolved—especially with China—and inflation data and Fed policy decisions on the horizon, volatility is likely to remain a central theme in the weeks ahead.
