Trump’s Tariff Pause Sparks Crypto Rally: XRP, ETH Lead Gains

The crypto market just caught a big break—and it has Donald Trump to thank. After the former president surprised everyone with a sudden 90-day pause on tariffs, both stock and crypto markets shot up in relief. Bitcoin jumped over 7%, reclaiming the $80,000 mark, and altcoins weren’t far behind.

But this rally isn’t just about crypto. It’s tied to a much bigger story – one involving market panic, policy reversals, and a trade chess game that’s only getting started.

Here’s what’s going on.

Altcoins Recover Losses

Among major tokens, XRP and Ethereum stood out with impressive 12% gains. Other top altcoins like Cardano (ADA), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) also posted solid gains of up to 10%. The overall crypto market cap rose by about 6%, showing renewed investor interest.

The rally was partly fueled by over $350 million in short liquidations in the crypto futures market. When traders betting against the market are forced to close their positions, it often helps push prices higher. This gave the market a boost after Bitcoin briefly dipped to $75,000 earlier in the week. Many see this as a sign that prices are returning to more balanced levels.

Trump Moves to Ease Global Tensions – Except With China

Trump’s decision to pause steeper tariffs applies to all countries except China, helping calm fears of a global recession. In a Truth Social post, he said he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” However, he warned that tariffs on China would rise to 125% once the pause ends.

Treasury Secretary Scott Bessent said the tariff pause was always part of a plan to push other countries into negotiations. But Trump’s sudden shift came just a day after new tariffs caused markets to crash, wiping out trillions in value and sending U.S. bond yields sharply higher. That market reaction likely influenced the policy reversal.

Biggest Stock Market Jump Since 2008

This move sparked the biggest stock market rally since the 2008 financial crisis. The S&P 500 jumped 9.5%, and the Nasdaq surged 12%, helping pull markets out of a deep slump. Experts say this could be a short-term step to reduce market pressure while keeping negotiation leverage. For now, it offers a brief sense of stability for businesses and investors.

Many believe the rally reflects hopes that more trade deals are on the way, as countries aim to avoid a full-blown trade war with the U.S. The long-term impact of the ongoing U.S.-China tariffs could reshape global trade, and much will depend on how things unfold in the coming months.

Has the Crypto Market Found a Bottom?

Jupiter Zheng from HashKey Capital believes crypto might have hit a local bottom, supported by growing optimism that the worst may be over. While China’s response to the upcoming 125% tariff remains a concern, ongoing talks with other countries offer some hope.

Zheng also pointed to favorable U.S. crypto regulations, suggesting that Bitcoin and other cryptocurrencies may have already priced in the bad news. If no new shocks emerge, there may still be room for growth in the market.