What happened?

President Donald Trump announced a 90-day pause on new trade tariffs, which led to a rebound in the crypto market and equities. Bitcoin saw a sharp increase of 9%, reaching around $82,500, while Ethereum surged by 13.4%. This unexpected decision provided relief after several days of steep market declines due to rising trade tensions.

Who does this affect?

This announcement affects investors and traders in both the cryptocurrency and stock markets who experienced recent volatility. It also impacts companies involved in international trade between the US and China, as existing duties still apply to certain imports. Additionally, traders who engage in derivatives trading were hit hard, with over 131,000 liquidated positions due to the sudden market bounce.

Why does this matter?

This tariff pause temporarily lifted market sentiment, causing broad-based gains across digital assets and stocks. The S&P 500 recorded its strongest single-day gain since October 2008, and the total crypto market capitalization climbed to $2.68 trillion. However, ongoing trade tensions and existing tariffs suggest that market volatility may continue, requiring investors to remain cautious.