- Bitcoin surged over 10% in 24 hours following President Trump’s announcement to pause tariffs, reaching approximately $83,000.
- The cryptocurrency rally mirrored gains in traditional markets, with the S&P 500 and Dow Jones rising 9% and 7% respectively.
- Experts attribute the crypto market gains directly to Trump’s tariff policy shift, highlighting Bitcoin’s continued correlation with risk assets despite its reputation as a store of value.
Bitcoin prices jumped more than 10% within 24 hours after President Trump announced a “pause” on tariffs, reaching approximately $83,000 today, according to Coinbase data from TradingView. This rally coincided with significant gains in traditional markets, as the S&P 500 index surged over 9% and the Dow Jones Industrial Average climbed more than 7%, Google Finance data shows.
The cryptocurrency market saw widespread growth beyond Bitcoin. Alternative cryptocurrencies (altcoins) experienced substantial increases between 10% and 30% in the same 24-hour period, according to CoinMarketCap figures. A social media cryptocurrency commentator known as Wendy O emphasized these were “across the board” gains throughout the cryptocurrency sector.
TARIFF ANNOUNCEMENT DRIVES MARKET RALLY
Tim Enneking, managing partner of Psalion, directly attributed the market surge to Trump’s tariff announcement. “The 90-day pause was hugely important and the sole proximate cause of the amazing jump across almost all markets,” Enneking stated via email. He explained that while Trump imposed a 125% tariff on China, tariffs on other countries would decrease to 10%, relieving immediate market concerns.
Enneking further noted that the policy shift demonstrated flexibility in what had previously been portrayed as “immutable” tariff positions. “Now we know it is possible to persuade Trump to back down, which means that we’re back to tariffs as a bargaining tool,” he added.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, shared a similar perspective, confirming that “Bitcoin’s rally reflects the broader risk-on mood sparked by Trump’s tariff pause.” However, DiPasquale highlighted that Bitcoin continues to demonstrate strong correlation with traditional risk assets like stocks, contrasting with its promoted role as a hedge or store of value.
CONTINUED VOLATILITY EXPECTED
Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, described today’s market movement as “one of the 10 best percentage returns day in the history of the S&P 500.” He attributed this performance to “a combination of short-term oversold conditions, short covering, and reassessment after the worst-case scenario was already being priced in.”
Looking forward, market participants should prepare for continued fluctuations. “We expect the volatility is likely to continue, as this story is continuing to develop,” Sifling concluded, suggesting that the market’s response to the tariff situation remains fluid.
Today’s cryptocurrency rallies reinforce that despite its maturing status, Bitcoin still behaves primarily as a risk asset in response to broader economic policy shifts rather than trading independently of traditional financial markets.
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