Bitcoin experienced a sharp increase on Wednesday afternoon after former President Donald Trump announced via social media that he had authorized a 90-day pause on tariffs. The price of the leading cryptocurrency surged by over 7% to reach $82,305.55, according to Coin Metrics.
Prior to this spike, Bitcoin had dipped to $74,567.02 as the benchmark 10-year U.S. Treasury yield briefly surpassed 4.51%, although it has since receded from that peak. Other cryptocurrencies also saw significant gains, with Ether, Dogecoin, and XRP rising more than 12%. The Solana token soared by over 14%.
In the stock market, Bitcoin proxy company MicroStrategy, recently rebranded to Strategy, jumped by 23%. Robinhood saw a 24% increase, while crypto exchange Coinbase experienced a near 17% rise. Bitcoin’s rally coincided with the largest surge in the S&P 500 index since 2008, triggered by Trump’s statement on Truth Social declaring the 90-day tariff pause and a temporary reduction of the reciprocal tariff to 10%, alongside plans to raise tariffs on China to 125%.
Ben Kurland, CEO of crypto research platform DYOR, remarked, “Trump’s 90-day tariff pause is a strategic breather — he’s easing short-term market pressure without giving up leverage, sending a clear signal that his approach to trade is transactional, not ideological. This move calms investor nerves and gives businesses a momentary sense of stability, but it’s not long enough to prompt real supply chain shifts or investment decisions.” He added, “Markets may exhale, but the uncertainty hasn’t gone anywhere.”
Bitcoin’s brief drop below $80,000 was anticipated and short-lived, maintaining a trading range between $80,000 and $90,000 for most of the year after reaching its all-time high in January.
The cryptocurrency has been closely following equity market trends, with traders seeking clarity on the Trump administration’s tariff plans while lacking dedicated growth drivers within the crypto space. Bitcoin and major stock averages have shown similar levels of intraday volatility, especially following Trump’s announcement of sweeping tariffs last Thursday.
While Bitcoin may continue to move in line with tech stocks in the short term, Zach Pandl, head of research at Grayscale Investments, advised long-term investors to prepare for sustained dollar weakness and rising inflation, echoing historical trends during periods of intense U.S. trade disputes.
Currently, Bitcoin is down approximately 12% year-to-date and nearly 25% from its all-time high.
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