Key Points
- Following Trump’s tariff pause, the crypto market saw significant gains with Bitcoin and Ethereum posting over 5% and 8% increases respectively.
- Despite escalating US-China trade tensions, the crypto market demonstrated remarkable resilience.
Following an extended period of downturn, both the cryptocurrency and broader financial markets experienced a moment of respite on April 9th, after Donald Trump announced a 90-day tariff pause for most nations affected by his aggressive trade policy.
The official confirmation of this move was enough to temporarily ignite a bullish sentiment, as market optimism had already been on the rise due to rumors of such a decision.
Impact on the Crypto Market
Trump exacerbated tensions by levying additional tariffs on Chinese goods, bringing the total import duties to a steep 125%. This announcement sparked an immediate rally across both traditional and digital markets.
Stocks experienced a surge, with Galaxy Digital rising 18% within hours of the reversal, while Bitcoin mining firms like Riot Platforms and Marathon Digital also saw gains.
Major cryptocurrencies followed this trend—Bitcoin jumped 5%, while Ethereum and Ripple surged 13% each, reflecting renewed investor confidence.
China’s Retaliation
China responded swiftly and aggressively to the tariffs exceeding 100%, retaliating by increasing duties on U.S. imports to 84%. Beijing also imposed restrictions on 18 American companies, primarily in the defense sector, and plans to increase tariffs by another 50% on top of the 34% already scheduled—further escalating tensions in the deepening U.S.-China trade war.
Despite the escalating tensions and market uncertainty, the crypto market showcased remarkable resilience.
Bulls Dominate the Crypto Market
According to CoinMarketCap, the global crypto market cap surged to $2.6 trillion, marking a 6.07% rise in just 24 hours. At the time of writing, Bitcoin climbed to $81,965.56, reflecting a 5.54% gain, while Ethereum rallied nearly 9% to reach $1,610.03. XRP and Solana weren’t far behind, each posting gains of over 8%.
Industry leaders shared similar views, with Binance CEO Richard Teng recently emphasizing that while short-term volatility is inevitable, Bitcoin could ultimately emerge stronger amid broader economic disruption.
