The cryptocurrency market surged after U.S. President Donald Trump announced a temporary 90-day pause on tariffs for the majority of trading partners, excluding China.
This announcement, made on Wednesday, has injected much-needed optimism into markets that have been overshadowed by trade tensions and economic uncertainties in recent months.
The cryptocurrency market responded emphatically to the news, with Bitcoin (BTC) rebounding sharply to climb back above $82,000.
The digital asset registered an impressive 8.87% gain over the past 24 hours, triggering over $75 million worth of short liquidations.
This development could signal the start of a broader bull run, especially given historical trends in the cryptocurrency market.
Q2 has traditionally been a strong period for Bitcoin and altcoins, with April, May, and June often delivering notable gains.
Bitcoin’s recent resilience has impressed even traditional market analysts. Despite a 26% pullback from its January highs, investment firm Bernstein described this correction as “mild,” particularly in comparison to prior downturns that saw losses of 50-70%.
The 90-day tariff reprieve announced by Trump has provided a much-needed lifeline for global markets.
Many trading partners had proactively engaged with U.S. officials to resolve trade disputes and secure exemptions, leading to this temporary pause. Analysts suggest that this window could encourage diplomatic resolutions while reducing tensions.
In contrast, China remains excluded from this concession, continuing to face heightened tariffs. Following China’s announcement of retaliatory tariffs on April 9, the Bitcoin options delta skew had peaked at 12%, indicating heightened bearish sentiment.
However, the ongoing exclusion of China signals the administration’s continued hardline stance and potential for future market volatility.