Bitcoin had a thrilling jump Wednesday afternoon after US President Donald Trump made an unexpected statement, rising more than 7% to $82,350.37. On social media, Trump announced that he had approved a 90-day tariff halt, providing the market with a short but much-needed reprieve. This action not only caused the price of Bitcoin to soar, but it also had repercussions for the whole cryptocurrency market.
Bitcoin had fallen as low as $74,567.02 earlier in the day due to pressure from a temporary increase in the US 10-year Treasury rate, which had risen beyond 4.51%. But as soon as word of Trump’s tariff suspension surfaced, the price of Bitcoin swiftly turned around and surged upward, according to a CNBC report.
The movement was not lost on the larger cryptocurrency market. While Solana’s token soared by an astounding 14%, Ethereum, Dogecoin, and XRP all saw increases of over 12%. Bitcoin-related stocks, including MicroStrategy (now Strategy), Robinhood, and cryptocurrency exchange Coinbase, all recorded 25% increases.
Trump’s statement coincided with the largest increase in the Dow Jones Industrial Average in five years, making it a crucial occasion. Trump said in a post on Truth Social that he has “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” He added that when the hiatus is over, the duty on China will increase to 125%.
The CEO of the cryptocurrency research site DYOR, Ben Kurland, referred to the action as a “strategic breather.” He clarified that it is a short-term solution intended to reduce market pressures without sacrificing leverage. “It calms investor nerves and provides businesses a short-term sense of stability,” Kurland said, though he added that the uncertainty remains, and significant changes in supply chains or investment decisions are unlikely in the short run.
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The brief decline of Bitcoin below $80,000 was partly expected. Bitcoin peaked in January and has been trading in the $80,000 to $90,000 region for the most of the year. As traders constantly monitor Trump’s tariff intentions, the price moves of cryptocurrencies have mainly followed those of the stock market. Bitcoin has closely followed the equities markets, even if it has shown less volatility than stocks, particularly since Trump’s initial tariff announcements last week.
Zach Pandl, head of research at Grayscale Investments, advised investors who are considering the long term to brace themselves for prolonged inflation and dollar weakening, akin to past instances of US trade conflict. The most recent rise suggests a positive recovery, at least for the time being, even if Bitcoin is still down around 12% year-to-date and 25% from its peak.
