President Donald Trump's announcement of a 90-day tariff pause on electronics has spurred a rally in the crypto market.
Tariff Pause and Market Reaction
Trump's recent announcement of a 90-day tariff pause on electronics, excluding products from China, has triggered a surge in Bitcoin, which is now trading above $85,000. Initially, Bitcoin dipped to $74,000 following the announcement, but it quickly recovered by 11% to reach $82,000 by Friday. Analysts have noted a positive market sentiment with other cryptocurrencies like XRP and Solana rising by 20% and 23%, respectively.
Criticism from China
China, whose products are exempt from the tariff pause, expressed discontent with Washington’s actions. The Ministry of Commerce described the exemptions as 'a small step' towards rectifying the misguided approach of the US. In response, China urged the US to abandon 'erroneous' tariffs and return to mutual respect and equal dialogue.
Future of the Crypto Market
Despite Bitcoin’s current gains, it remains far from its all-time high of $109,000. Analysts warn of potential continued volatility in the market. Economist Youwei Yang noted that the tariff pause provided temporary relief but that the market remains cautious while waiting for clearer signals to regain momentum.
Trump's tariff pause has temporarily bolstered the crypto market, but participants should remain vigilant towards future developments and potential volatility.
