Bitcoin Surges After 90-Day US Tariff Pause – What Does This Mean for the Crypto Market?
US tariff pause triggers an unexpected boost in the crypto market
The crypto world is back in the spotlight. Bitcoin broke through the $80,000 mark on Wednesday following a surprising decision by the U.S. government: a temporary 90-day pause on import tariffs for 75 countries. This policy shift comes at a time of increasing geopolitical tension and seems to have positively surprised markets worldwide.
However, President Trump has now decided to make an exception for 75 countries that, according to him, have not taken retaliatory measures against U.S. tariffs. For these countries, tariffs are temporarily reduced to 10%, and a 90-day pause will apply during which negotiations with government agencies will take place.
In addition, crypto often mirrors movements in major tech stocks. And there too, it was celebration: shares of companies like Apple, NVIDIA, and Tesla surged with double-digit gains. The Nasdaq-100 recorded one of its strongest trading days in years – and crypto followed suit.
This escalation in the U.S.-China trade relationship could cause renewed market unrest in the long term. But in the short term, the message is clear: markets are reacting positively to the U.S.'s willingness to negotiate with other countries, bringing a bit of stability back into play.
Disclaimer: This is not financial advice. Always do your own research and consider seeking professional guidance.
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What Exactly Does the Tariff Pause Entail?
The United States had recently announced increased import tariffs (reciprocal tariffs) for over 180 countries. This was in response to economic imbalances and a lack of reciprocity in trade relationships.However, President Trump has now decided to make an exception for 75 countries that, according to him, have not taken retaliatory measures against U.S. tariffs. For these countries, tariffs are temporarily reduced to 10%, and a 90-day pause will apply during which negotiations with government agencies will take place.
Why Is Crypto Rising So Strongly Because of This?
Markets love clarity and breathing space. The pause in trade tensions between the U.S. and dozens of countries is seen as a sign of temporary calm. For crypto investors, this means less external pressure, which immediately improves sentiment. In uncertain times, crypto is often seen as an alternative market that moves differently from traditional stocks.In addition, crypto often mirrors movements in major tech stocks. And there too, it was celebration: shares of companies like Apple, NVIDIA, and Tesla surged with double-digit gains. The Nasdaq-100 recorded one of its strongest trading days in years – and crypto followed suit.
China Faces Stricter Tariffs
While most countries can take a breather, China is facing stricter measures. President Trump announced that the import tariff on Chinese goods will be increased to 125% — a strong response to what he sees as unfair trade practices by China, which had previously imposed an 84% tariff on U.S. products.This escalation in the U.S.-China trade relationship could cause renewed market unrest in the long term. But in the short term, the message is clear: markets are reacting positively to the U.S.'s willingness to negotiate with other countries, bringing a bit of stability back into play.
What Happened to Other Cryptocurrencies?
It wasn‘t just Bitcoin that benefitted. Ethereum, XRP, and Solana each saw gains of around 10% within 24 hours. Additionally, niche sectors within crypto also turned green:- DeFi tokens saw an average increase of 7%
- Meme coins like PEPE and DOGE jumped as much as 15–20%
- AI-related cryptos like RENDER also posted strong gains
Disclaimer: This is not financial advice. Always do your own research and consider seeking professional guidance.