On Thursday morning, Bitcoin (BTC) experienced a remarkable rise, approaching the $82,000 mark, as positive sentiment spread across the entire cryptocurrency market. This upswing was catalyzed by President Donald Trump’s reversal on global tariff levies, which provided much-needed relief to broader equity markets following a tumultuous week.
The increase in BTC prices was mirrored by substantial gains among other major cryptocurrencies. Both XRP and ether (ETH) surged by an impressive 12%, while Cardano’s ADA, BNB Chain’s BNB, Solana’s SOL, and dogecoin (DOGE) saw increases of up to 10%. Overall, the total market capitalization for cryptocurrencies rose by 6%, with the CoinDesk 20 (CD20) reporting a 7% boost.
The crypto futures market also experienced a considerable amount of short liquidations, exceeding $350 million—the highest level observed since early March. This liquidation helped alleviate the losses that accumulated earlier in the week when Bitcoin dipped to nearly $75,000.
Typically, such liquidation events can provide a buying opportunity, as noted by CoinDesk. They signal an overstretched market, indicating that a price correction has likely taken place.
Among the mid-cap tokens—those with market caps below $5 billion—Bittensor’s TAO, Sonic’s S, and Flare’s FLARE demonstrated remarkable growth, with increases reaching as high as 30%.
The recent market surge came in the wake of Trump’s decision to pause higher tariffs on most countries, with the notable exception of China, where tariffs were escalated to 125%. This strategic move reflects the mounting anxiety among global leaders regarding potential recession risks. Countries previously affected by reciprocal duties now revert to the earlier baseline rate of 10% for tariffs.
The reaction in U.S. stock markets was pronounced as well, with the S&P 500 Index witnessing its most significant gains since 2008, climbing 9.5% and rising from bear-market territory. The tech-heavy Nasdaq 100 experienced an even more substantial surge, soaring 12%.
As market participants closely monitor ongoing developments, there are emerging signs of cautious optimism regarding future trading conditions. Jeff Mei, COO at BTSE, indicated this sentiment in a Telegram message to CoinDesk: “The market is rallying in response to anticipation that most trading partners will negotiate trade deals with the US, avoiding a full-fledged trade war.” He further cautioned that ongoing tariffs against China could lead to a fundamental realignment of global trade, necessitating vigilance over the unfolding consequences in the coming months.
Additionally, Jupiter Zheng, partner at HashKey Capital, expressed a belief that the markets may have reached a local bottom. In an email, he stated, “The upswing was fueled by optimism that the worst may be behind us. While potential headwinds remain, such as retaliatory tariffs from China in response to Trump’s 125% increase, the commencement of negotiations with other countries offers some hope.”
Zheng concluded by noting the potential for growth in Bitcoin and other cryptocurrencies, contingent on the continued easing of regulatory hurdles and favorable policymaking within the U.S., suggesting that the industry may not have fully priced in these positive developments yet.
