President Donald Trump's recent announcement of a 90-day tariff pause has spurred a $3.5 trillion surge in the stock market.
Stock Market Reaction
Following the tariff pause announcement, the US stock market experienced a massive increase of $3.5 trillion in a single day, paralleling the entire crypto market cap at its peak in late 2024. The S&P 500 index surged by 5.8%, marking one of the largest single-day gains since 1923.
Crypto Market Concerns
Trump's earlier tariff threats led to Bitcoin's decline below $75,000 earlier this week. However, the subsequent tariff pause announcement caused Bitcoin prices to spike by 6.50%, surpassing $82,000. Although the overall crypto market cap experienced a 7% increase, its volatility remains a concern for investors.
Future of Cryptocurrencies amid Market Volatility
As global markets grapple with the escalation of the trade war with China, the crypto sector finds itself in a precarious position. Investors hope for a favorable tailwind similar to the stock market's, but prospects remain uncertain amid ongoing market volatility.
The current situation highlights the complex interrelations between traditional and decentralized financial systems.
