President Donald Trump has paused his sweeping tariff expansion, and the reaction has been explosive. Bitcoin surged to $82k, although the rally was short-lived. U.S. equities erupted, with the Dow Jones surging nearly 2,900 points, the S&P 500 spiking to 9.5%, and the Nasdaq soaring over 12% in a rally not seen since the financial crisis.
Trump’s announcement included a 90-day delay on reciprocal tariffs for all countries except China, which now faces an even steeper 125% levy. The news, delivered via social media, instantly flipped sentiment from panic to euphoria, offering a temporary lifeline to risk-on assets battered by weeks of geopolitical strain.
Markets Struggle Under Extreme Volatility
Crypto markets followed suit with similar velocity. Bitcoin surged past $82,000, reversing a sharp intraday drop from earlier lows near $74,500. However, the asset is now back below $78K as turbulence still grips the market.
Ethereum rebounded 12% but quickly lost 5% in the last 24 hours, while Solana posted a 14% rally. Other majors like XRP and Dogecoin also logged strong double-digit gains. However, all of these coins erased their gains as uncertainty still dominates investor sentiment.
Crypto-adjacent stocks joined the risk rally. Strategy soared 23%, Coinbase jumped 19%, and Robinhood leapt 24%. Bitcoin miners like MARA and Riot Platforms both gained over 10%, buoyed by fresh capital inflows and renewed confidence in short-term macro stability. Ben Kurland, CEO of DYOR said,
The pause was a pressure valve, It’s not a policy shift — it’s a strategic breather. The market’s reaction shows how tightly wound investors were.
Long-Term Uncertainty Lingers
Bond markets reacted in tandem. The 10-year U.S. Treasury yield dipped from 4.51% to 4.3%, helped by a solid auction and strong demand from foreign buyers. The return of risk appetite was swift — but fragile.
Analysts at Apollo Global and Goldman Sachs pulled back their recession forecasts for 2025 following the rally, but were quick to caution: this is not a resolution. Markets now face three months of ambiguity as the Trump administration recalibrates its trade policy.
Meanwhile, inflation concerns and a still-strong U.S. dollar remain top of mind for macro-focused investors — a dynamic that could continue to favor Bitcoin over the long term.
