The financial markets experienced one of the most important days of the year yesterday, after President Donald Trump decided to temporarily suspend the increase in tariffs on imports from all countries, except for China, for which the levy was increased to a significant 125%. A move that led to a wave of relief not only in the stock markets but also in the cryptocurrency sector, pushing Bitcoin (BTC) and other major tokens to spectacular bull rallies.
Bitcoin nears $82,000: the race continues after Trump’s tariff halt
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The most capitalized cryptocurrency in the market recorded an impressive surge, reaching almost $82,000. This upward move led the entire cryptocurrency market, pushing other digital currencies to double-digit gains. In particular, XRP and Ethereum (ETH) rose by 12%, while Cardano (ADA), Solana (SOL), BNB, and Dogecoin (DOGE) saw an average increase of 10%.
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The overall capitalization of the crypto market has increased by 6%, with the index CoinDesk 20 (CD20) marking a +7%, providing a clear indication of the positive sentiment spread among digital investors.
The key role of liquidations: over $350 million
Another decisive element behind this rally was the massive volume of short position liquidations, that is, bearish bets, recorded in the futures markets linked to cryptocurrencies. On Thursday, over 350 million dollars in liquidations were reached, the highest level since early March.
Events of this type, explain from CoinDesk, often represent a buying opportunity, as they indicate that the market has reached a significant correction point and might be preparing for a new phase of growth.
Middle-cap on the rise: TAO, S, and FLARE lead the bull
Alongside the market leaders, several mid cap – cryptocurrencies with a capitalization of less than 5 billion dollars – have benefited from the wave of enthusiasm. Among these, Bittensor (TAO), Sonic (S), and Flare (FLARE) stood out, gaining up to 30%, excelling in the segment of emerging tokens.
Stocks on the rise: Wall Street experiences the best day since 2008
Not only cryptocurrencies. The US stock markets also celebrated Trump’s decision by recording the strongest performances in the last 15 years. The S&P 500 jumped by 9.5%, strongly exiting the bear market zone, while the tech-heavy Nasdaq 100 impressed with a 12% increase.
This is the best rally since the world faced the great financial crisis of 2008, an eloquent signal of the enormous impact that trade policy choices can still exert on the global economy.
The new geopolitical scenario: focus on China
The decision to exclude China from the suspension of tariffs was interpreted as a clear message from Trump. The tariffs on Beijing have indeed been increased to 125%, fueling the risk of a new spiral of commercial retaliations and geopolitical tensions.
According to Jeff Mei, COO of the BTSE exchange, the jump in the markets would be motivated by optimism towards the possibility that many trading partners seek bilateral agreements with the United States, thus avoiding a full-scale trade war. However, Mei warns that escalating tensions between Washington and Beijing could radically restructure the current architecture of global trade. “We remain cautious,” he stated, “until we see how the consequences evolve in the coming months.”
Prudent optimism among analysts: “We might have hit a bottom”
A scenario of moderate confidence is also shared by Jupiter Zheng, partner of HashKey Capital, who emphasizes how the markets may have already absorbed the worst of the recent turbulence. “The rebound is based on the optimism that the worst phase is over,” Zheng highlighted. At the same time, counter-tariffs from China cannot be completely ruled out, which could limit investors’ enthusiasm.
The attitude of the U.S. regulatory authorities also plays an important role. Zheng notes that recent efforts to simplify regulations and introduce more favorable policies for the digital financial sector may have contributed to the recent rally. “It is possible that Bitcoin and other cryptocurrencies have found a bottom,” he added, “as long as no unexpected surprises emerge.”
A high-tension week
The surge on Thursday comes after a particularly turbulent week for digital markets. In the previous days, Bitcoin had dropped to nearly 75,000 dollars, fueling investor concern. The strong recovery thus has the flavor of a technical rebound, but also of a structural reaction to a tangible change in macroeconomic fundamentals.
For now, analysts and investors remain on alert, closely watching the evolution of trade relations with China and the possible impact of American economic policies. But if the trend continues and consolidates, this could mark the beginning of a new phase of growth for the entire crypto sector.
With Trump’s shift on tariffs and the return of optimism, albeit cautious, among operators, the markets may have found a new equilibrium. Time will tell if this is a temporary truce or the beginning of a paradigm shift. Certainly, Bitcoin and cryptocurrencies have once again demonstrated their sensitivity to global events… and their surprising ability to react.