The cryptocurrency market experienced a significant recovery on Thursday following President Donald Trump’s unexpected decision to suspend a series of new trade tariffs, which propelled a widespread resurgence in both digital assets and traditional equities.
Bitcoin saw a notable increase, reaching approximately $82,500, a peak rise of 9%, before retracting slightly to $81,700 within 24 hours. Ethereum, on the other hand, surged by 13.4%, climbing to $1,611, while XRP recorded a 13% increase. Many other altcoins also enjoyed double-digit gains during this rally.
This shift in market sentiment came after a period of intense declines throughout global markets, driven largely by escalating trade tensions that had resulted in substantial sell-offs in both stocks and cryptocurrencies.
The turnaround was triggered late Wednesday when Trump announced a 90-day freeze on planned tariff increases, catching investors off guard and easing fears of further trade escalations.
Tariff Suspension Ignites Market Uplift, Yet China Still Faces 125% Increase
The President reiterated that tariffs on Chinese imports would still increase to 125%, accusing China of disregarding international market regulations. This statement indicated that tensions between the two economic giants remain unresolved.
Trump’s announcement came after China had raised import duties on U.S. goods to 84%, further intensifying a trade dispute that has burdened global markets for several weeks.
Despite the temporary reprieve offered by the tariff pause, the White House confirmed that a 10% blanket duty on most U.S. imports would continue, and existing tariffs on automobiles, steel, and aluminum would remain unchanged.
The S&P 500 finished the day with an impressive 9.5% gain, marking its highest single-day surge since October 2008. Similarly, the cryptocurrency market saw a boost, with total market capitalization rising 5.9% to reach $2.68 trillion, according to CoinGecko. Among altcoins, Flare (FLR) and Ondo recorded substantial gains of 34.9% and 21%, respectively.
Market Surge Comes at High Cost for Traders as Over 131,000 Liquidated
Markus Thielen, head of research at 10X Research, characterized the market rebound as likely short-lived, noting that “structural headwinds will persist, especially as we approach the U.S. corporate earnings season,” in comments to Cryptonews.
The recent upswing in the market prompted a substantial wave of liquidations within the derivatives space, with data from Coinglass indicating that 131,555 traders were liquidated in just 24 hours, amounting to a staggering $487.1 million.
Bitcoin was at the forefront of these liquidations, accounting for $185.2 million, followed closely by Ethereum, which saw $138.8 million liquidated. Although traders expressed relief at the temporary tariff suspension, it appears volatility remains an ongoing concern.
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