On April 9, 2025, the cryptocurrency market experienced a powerful surge after Trump’s surprise decision to pause reciprocal tariffs, boosting Bitcoin and altcoins.
On April 9, 2025, the cryptocurrency market witnessed a strong rally, sparking excitement among investors and traders globally. Bitcoin, Ethereum, and numerous altcoins recorded impressive gains, with Bitcoin briefly touching $78,000, its highest point in months.
The surprising reason behind this surge? Former President Donald Trump announced a 90-day suspension of planned reciprocal tariffs. This sudden shift in trade policy reduced global economic tensions, giving risky assets like cryptocurrencies a much-needed boost.
Crypto Market Surge. What Did Trump Announce?
Donald Trump, known for his tough stance on trade, surprised financial markets by announcing that his proposed reciprocal tariffs — aimed primarily at China and the European Union — would be paused for the next 90 days.
Trump stated that this move was intended to “give room for negotiation and reduce uncertainty in the global markets.” Investors interpreted this announcement as a signal of easing economic friction, and risk-on sentiment returned quickly across all major markets — especially crypto.
How Did Crypto React?
Shortly after Trump’s announcement, the major cryptocurrencies responded instantly:
- Bitcoin (BTC) rose from around $72,000 to nearly $78,000 within a few hours.
- Ethereum (ETH) spiked by over 8%, crossing the $3,800 mark.
- Popular altcoins like Solana (SOL) and Cardano (ADA) also posted double-digit gains.
The positive momentum was largely driven by:
- Increased investor confidence in global trade stability
- A flight towards decentralized assets in uncertain macro environments
- Renewed belief that cryptocurrencies are a hedge against traditional market instability
Why Is Crypto So Sensitive to Tariffs?
Cryptocurrencies are global assets, meaning they aren’t tied to one nation’s economy. When geopolitical tensions rise, investors often seek non-sovereign assets like Bitcoin. On the flip side, when trade tensions ease, liquidity flows back into risk assets, including crypto.
Trump’s tariff U-turn effectively reduced fears of an escalating global trade war, paving the way for renewed interest in higher-risk investments.
What Are Analysts Saying?
Many market analysts believe this rally could be the start of a new bullish wave for crypto in 2025.
According to Arthur Hayes, former CEO of BitMEX:
“This pause gives breathing room to global liquidity flows, and Bitcoin loves liquidity. Expect the bulls to charge.”
Other experts warn, however, that the market could remain volatile until a clear long-term trade agreement is reached. Short-term profit-taking could cause dips, but overall sentiment remains optimistic.
What Should Investors Watch Next?
Investors should keep an eye on:
- Any updates on U.S. trade policy after the 90-day window
- Reactions from other major economies like China and the EU
- Broader financial market trends impacting liquidity
Additionally, Bitcoin’s approaching halving event expected in mid-2025 could further compound bullish momentum if macro conditions remain supportive.
The crypto market surged because Donald Trump announced a 90-day pause on reciprocal tariffs, reducing global economic tensions and encouraging risk-on investments.
Bitcoin rose from around $72,000 to nearly $78,000 within hours following Trump’s tariff pause announcement.
Analysts predict bullish momentum could continue if global trade tensions remain low and liquidity stays strong, but short-term volatility is still possible.
Besides easing trade tensions, upcoming events like Bitcoin’s 2025 halving and broader adoption trends are also driving crypto prices higher.
