The announcement of the tariff pause triggered significant price increases in both cryptocurrency and stock markets, including Bitcoin and Tesla.
Market Reaction to Trump's Announcement
Bitcoin surged by over 8% on Wednesday after President Donald Trump announced on Truth Social a 90-day halt on key trade tariffs. This pushed Bitcoin's price up to $82,350.37. Earlier in the day, the price had dropped to $74,567.02 when the yield on 10-year U.S. Treasury bonds temporarily spiked above 4.51%.
Analysts' Perspectives on Future Trends
Zach Pandl, head of research at Grayscale Investments, noted that short-term movements in Bitcoin are likely to be tied to tech stocks. He emphasized that long-term investors should prepare for 'sustained dollar weakness and generally above-target inflation.'
Overall State of Crypto and Stock Markets
The announcement of the tariff pause initiated a rally in both the stock and crypto markets. The Dow Jones logged its biggest gain in five years. Tesla, a major gainer, saw a 20% increase. Despite this sharp rise, Bitcoin remains down approximately 25% from its all-time high in January.
Trump's announcement regarding the pause on tariffs has significantly impacted both the crypto and stock markets, increasing uncertainty and the potential for further changes.
