Following the announcement by the former US President Donald Trump of a 90-day suspension on tariffs for numerous countries, excluding China, there has been a noticeable surge in crypto and stock prices. Bitcoin (BTC), the leading cryptocurrency, has seen its value skyrocket to $82,000, and is now targeting the $83,000 threshold after a 6.1% leap in its value subsequent to the announcement.
Trump Declares 90-Day Moratorium on Tariffs
President Trump voiced his decision to increase tariffs on China to 125% “with immediate effect” due to their “lack of respect” towards global markets, via a post on Truth Social. This comes in the wake of China’s recent declaration of an 84% reciprocal tariff on US goods, which is set to commence on April 10.
Trump stated his reasons as follows: “Based on the disrespect that China has exhibited to the Global Markets, I am hereby increasing the Tariff levied on China by the United States of America to 125%, effective immediately. Hopefully, in the not too distant future, China will understand that its days of exploiting the U.S.A., and other Countries, is neither viable nor acceptable.”
In his post on Wednesday, Trump also disclosed that he had granted a “90 days PAUSE” for other countries after 75 nations approached multiple US representatives, including the Departments of Commerce, Treasury, and the US Trade Representative, to “negotiate a resolution to the subjects being debated relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non-Monetary Tariffs.”
Furthermore, Trump authorized an immediate significant reduction of the Reciprocal Tariff to 10% during the 90-day hiatus. In a subsequent post, the President stated, “This is an excellent time to invest.”
As a result of this news, there has been a steep increase in stock prices, with the S&P 500 (SPX) experiencing a 6% rise since the announcement. Concurrently, the crypto market saw its total market capitalization soar by roughly 5%, with cryptocurrencies like Bitcoin, Ethereum (ETH), XRP, and Solana (SOL) witnessing a 6%-12% increase within an hour.
Bitcoin’s Value Skyrockets to $82,000
Bitcoin rose from the $76,000-$77,000 bracket to $82,000, reclaiming this level for the first time since the previous Sunday. This 6% surge has sparked a wave of optimism among investors, who had previously seen Bitcoin drop to a five-month low over the weekend.
Bitcoin saw a nearly 10% decline between Sunday and Monday, driven by the ongoing tariff dispute. Amid the correction, Bitcoin reached the $74,000 support level for the first time since November.
On Monday, Bitcoin briefly regained the $80,000 mark following reports from major media outlets that the White House was contemplating a 90-day tariff suspension. However, Bitcoin’s gains were mostly wiped out after the news proved to be false.
Online reports indicate that the recent surge resulted in $75,000,000 worth of Bitcoin shorts being liquidated in the last 60 minutes.
At the time of writing, Bitcoin is trading at $82,444, reflecting a 4.1% decrease over the weekly period.
