Bitcoin experienced an exhilarating rally on Wednesday afternoon, spiking more than 7% to hit $82,350.37, following a surprise announcement from US President Donald Trump. Trump revealed on social media that he had authorized a 90-day pause on tariffs, offering a brief but much-needed breather to the market. This move not only sparked a surge in Bitcoin’s price but also had a ripple effect across the broader cryptocurrency landscape.
Earlier in the day, Bitcoin had dipped as low as $74,567.02, pressured by a brief spike in the US 10-year Treasury yield, which had climbed over 4.51%. However, as Trump’s tariff pause news broke, Bitcoin’s price quickly reversed course, soaring higher, as per CNBC report.
The broader crypto market didn’t miss out on the action. Ethereum, Dogecoin, and XRP all surged by more than 12%, while Solana’s token shot up by an impressive 14%. Stocks linked to Bitcoin, such as MicroStrategy (now rebranded as Strategy), jumped by 25%, Robinhood gained 23%, and crypto exchange Coinbase saw a 20% spike.
Trump’s announcement came at a pivotal moment, coinciding with the Dow Jones Industrial Average’s biggest rally in five years. In a post on Truth Social, Trump declared that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” He also noted that the tariff on China would rise to 125% once the pause ends.
Ben Kurland, CEO of crypto research platform DYOR, called the move a “strategic breather.” He explained that it’s a temporary measure designed to ease market pressures without giving up 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.
The dip below $80,000 for Bitcoin was short-lived, and somewhat anticipated. For most of the year, Bitcoin has fluctuated between the $80,000 and $90,000 range, after peaking in January. The cryptocurrency’s price movements have largely mirrored those of the stock market, with traders watching closely for clarity on Trump’s tariff plans. Despite showing less volatility than stocks, Bitcoin has tracked the equity markets closely, especially after Trump’s initial tariff announcements last week.
For those looking at the long-term picture, Zach Pandl, head of research at Grayscale Investments, suggested investors should prepare for sustained dollar weakness and inflation, similar to previous periods of US trade friction. While Bitcoin remains down about 12% year-to-date and 25% off its all-time high, the latest rally hints at a promising rebound — at least for now.
