- Trump’s tariff pause sparked a brief market rally, and China responded with aggressive countermeasures.
- The crypto market rebounded strongly, with Bitcoin and Ethereum posting over 5% and 8% gains.
After a prolonged slump, both the crypto and broader financial markets finally saw a glimmer of relief on the 9th of April, following Donald Trump’s announcement of a 90-day tariff pause for most nations impacted by his aggressive trade policy.
Market optimism had previously surged even on rumors of such a move, so the official confirmation was enough to briefly spark bullish sentiment.
While many nations paused to recover from the tariff shock, China was notably left out of these reprieves.
Impact on the crypto market after Trump’s tariff pause
Trump intensified tensions by imposing additional tariffs on Chinese goods, increasing total import levies to a steep 125%.
Trump’s announcement triggered an immediate rally across both traditional and digital markets.
Stocks surged, with Galaxy Digital soaring 18% within hours of the reversal, while Bitcoin [BTC] mining firms like Riot Platforms and Marathon Digital also saw gains.
Major cryptocurrencies followed suit—Bitcoin jumped 5%, while Ethereum [ETH] and Ripple [XRP] surged 13% each, reflecting renewed investor confidence.
China retaliated hard
As expected, China responded swiftly and aggressively to being singled out with tariffs exceeding 100%, retaliating by hiking duties on U.S. imports to 84%.
Beijing also slapped restrictions on 18 American companies, primarily in the defense sector, and plans to boost tariffs by another 50% on top of the 34% already scheduled—further escalating tensions in the deepening U.S.-China trade war.
Remarking on the same, China’s finance ministry said in a statement,
“The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes of China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system.”
However, despite the escalating tensions and market uncertainty, the crypto market showcased remarkable resilience.
Bulls overtake the crypto market
According to CoinMarketCap, the global crypto market cap surged to $2.6 trillion, marking a 6.07% rise in just 24 hours.
At the time of writing, BTC climbed to $81,965.56, reflecting a 5.54% gain, while ETH rallied nearly 9% to reach $1,610.03. XRP and Solana [SOL] weren’t far behind, each posting gains of over 8%.
Industry leaders echoed similar sentiments, with Binance CEO Richard Teng recently emphasizing that while short-term volatility is inevitable, Bitcoin could ultimately emerge stronger amid broader economic disruption.
In conclusion, Teng put it best when he said,
“Many long-term holders continue to view Bitcoin and other digital assets as resilient during periods of economic stress and shifting policy dynamics.”
