The cryptocurrency and stock markets recently got a major boost, thanks to a surprising move from President Donald Trump. He announced a 90-day pause on tariffs for imports from over 70 countries, and the effect was almost immediate. Investors breathed a sigh of relief, and both markets saw a significant rebound. Bitcoin soared to nearly $85,000, with altcoins like Ethereum and Solana joining the upward trend.
Even meme coins like Pepe were riding high. But here’s the catch—this relief rally might not last forever.
Keep reading to find out what’s driving these gains—and what could quickly reverse the trend.
The stock market also reacted favorably. The Nasdaq 100 climbed more than 310 points, with major tech stocks such as Apple, Microsoft, NVIDIA, and AMD all seeing gains. Optimism grew further when the Trump administration decided not to include smartphones and semiconductors in the tariff list.
This was a crucial decision, especially since a 145% tax on Chinese-made electronics could have made everyday items like iPhones much more expensive for U.S. consumers.
A Move Toward Flexibility
Trump’s decision to pause the tariffs was seen as a sign of flexibility, particularly toward countries like Japan and South Korea. This boosted hopes for stable trade negotiations, which helped fuel a rally in tech stocks. Since cryptocurrencies often follow the movements of tech stocks, digital assets also saw strong gains, which reassured both short-term traders and long-term holders.
However, not everyone is confident that the rally will last. President Trump is known for his unpredictability and has a history of changing his policies quickly, often in response to political pressure or media coverage. His sudden shifts—such as removing smartphones from the tariff list after initially targeting them—keep markets on edge, particularly in the already-volatile crypto space.
If Trump ends the 90-day pause and reinstates strict tariffs, the market could face a sharp downturn. A return to aggressive trade policies could rekindle fears of a recession, and in such a scenario, Bitcoin and other cryptocurrencies might lose their recent gains. Technical analysis shows that Bitcoin is still trading below its 50-day moving average, indicating ongoing bearish pressure.
If Bitcoin falls below the $76,495 support level from March 11, it could drop further to $70,000, pulling the broader market down with it.
All Eyes on Trump’s Next Move
Trump’s next move could play a crucial role in shaping the short-term direction of both the crypto and stock markets. With global markets sensitive to trade and policy shifts, investors are closely monitoring any signs of change, eager to see whether this rally can continue or whether it will falter.
Meanwhile, investor Ray Dalio has raised serious concerns about Trump’s tariff-heavy economic approach. In an interview with NBC, the founder of Bridgewater Associates warned that the U.S. could be heading toward a major breakdown in the global monetary system, potentially leading to international conflict if Trump’s policies are mishandled. Dalio, who accurately predicted the 2008 financial crisis, believes the current situation is rare and highly serious.
As Bitcoin hovers around $85,000, market sentiment remains uncertain. While exemptions for smartphones have temporarily eased fears, Dalio’s warning adds more pressure to an already fragile market.
With so much riding on Trump’s next move, the markets are anything but predictable. Stay tuned to Coinpedia for updates!
Tariffs impact global trade sentiment; easing them often drives up risk assets like Bitcoin and altcoins.
If Trump reinstates tariffs, fear could return to markets, possibly pushing Bitcoin below key support levels.
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