Crypto Market Rebounds Sharply as Trump Freezes Global Tariffs, Except for China
Bitcoin (BTC) rallied close to $82,000 early Thursday, sparking a wave of green across the crypto market after President Donald Trump unexpectedly paused tariff hikes for most countries — but doubled down on China with a sharp 125% rate.
The crypto sector lit up following Wednesday’s broader market recovery, which came after Trump’s sudden reversal on his global tariff policy amid rising fears of a recession and pushback from global leaders. The relief rally extended into Thursday, with the total crypto market capitalization climbing 6%.
XRP and Ethereum’s ether (ETH) led the charge among top assets, each soaring 12%, while other major tokens like Cardano (ADA), Binance’s BNB, Solana (SOL), and Dogecoin (DOGE) surged up to 10%. The CoinDesk 20 Index, which tracks a wide basket of crypto assets, was up 7% in the same period.
Futures markets added fuel to the surge, as more than $350 million in short positions were liquidated — the biggest such move since early March. These forced buybacks often create a tailwind for prices, especially after a sharp dip like the one seen earlier in the week, when BTC briefly touched $75,000.
In the mid-cap space, Bittensor’s TAO, Sonic’s S token, and Flare’s FLARE stood out with gains of up to 30%, outpacing most of the broader market.
The rally came on the heels of Trump’s announcement that all countries — except China — would see a 90-day pause on reciprocal tariffs, reverting to a more manageable 10% baseline. China, meanwhile, was hit with a hefty 125% tariff hike, intensifying tensions between the two economic giants.
U.S. equity markets also soared in response. The S&P 500 posted a 9.5% gain, its strongest day since the 2008 financial crisis, while the Nasdaq 100 rocketed 12%.
“The market is reacting positively to the prospect that the U.S. might broker trade deals with allies, sidestepping a full-blown trade war,” said Jeff Mei, COO of BTSE, in a Telegram message to CoinDesk. “But the stand-off with China will reshape global trade routes and dynamics in ways we haven’t seen before. We’re staying cautious for now.”
Jupiter Zheng, partner at HashKey Capital, said sentiment is improving and the worst might be behind the market.
“The bounce is driven by optimism that the bottom may be in,” Zheng said in an email. “Even with looming threats like potential retaliatory tariffs from China, negotiations with other countries bring a degree of hope.”
Zheng also pointed to improving regulatory clarity in the U.S. as a longer-term catalyst.
“As regulators continue to roll back red tape and introduce crypto-friendly frameworks, the market may be undervaluing just how positive these developments are,” he added. “If no further shocks hit, Bitcoin and other digital assets could be entering a new growth phase.”
