Bitcoin Jumps Over 6% After Trump’s 90-Day Tariff Break; Ethereum, XRP Also Surge

Cryptocurrencies experienced a significant rally following President Donald Trump’s surprising announcement of a 90-day pause on tariff increases for most countries. Bitcoin led the charge with a notable price jump, while Ethereum and XRP posted even stronger percentage gains, highlighting renewed investor optimism in digital assets amid broader market relief.

Bitcoin’s Strong Recovery

Bitcoin surged approximately 6-8% in the immediate aftermath of Trump’s tariff pause announcement on April 9-10, 2025. The world’s largest cryptocurrency by market capitalization reached as high as $82,350, a substantial recovery from its recent lows:

• Pre-announcement price: Bitcoin was trading between $74,500-$77,000
• Post-announcement peak: $81,700-$82,350
• Percentage increase: Approximately 6-8%

The move represented a welcome reversal for Bitcoin, which had been under pressure in previous sessions following the initial announcement of Trump’s sweeping tariff plans. Trading volumes spiked during the rally, indicating strong buyer interest and market participation.

Ethereum and XRP Outperform Bitcoin

While Bitcoin’s gains were impressive, both Ethereum and XRP outperformed the flagship cryptocurrency in percentage terms:

Ethereum (ETH)

• Percentage increase: 12.6%
• Price point reached: $1,613
• Contributing factors: In addition to the tariff pause, Ethereum benefited from the recent approval of options on spot Ethereum ETFs, which added regulatory credibility and new investment avenues

XRP

• Percentage increase: 12.7%
• Price milestone: Exceeded the $2 mark, reaching as high as $2.09
• Notable aspect: This surge allowed XRP to reclaim the important psychological $2 level after recent market weakness

The stronger percentage gains for these altcoins reflect their typically higher volatility compared to Bitcoin during broad market movements, both to the upside and downside.

Broader Cryptocurrency Market Response

The cryptocurrency market rally was comprehensive, extending well beyond the top assets:

• Total market capitalization: Increased by 8.3% to $2.59 trillion
• Market breadth: The rally was broad-based, with nearly all major cryptocurrencies posting gains

Other significant performers included:

• Cardano (ADA): Gained approximately 10%
• Binance Coin (BNB): Rose approximately 10%
• Solana (SOL): Increased by approximately 10%
• Dogecoin (DOGE): Surged approximately 10%

Some mid-cap tokens showed even more dramatic moves:

• Bittensor’s TAO: Surged up to 30%
• Sonic’s S: Gained nearly 30%
• Flare’s FLARE: Increased as much as 30%

Catalyst: Trump’s Tariff Policy Shift

The primary catalyst for the cryptocurrency rally was President Trump’s unexpected policy reversal regarding tariffs:

• Announcement timing: April 9-10, 2025
• Policy details: A 90-day pause on tariff increases for more than 75 countries that had not retaliated against earlier U.S. trade measures
• Key exception: China was excluded from the pause and instead faced increased tariffs of 125%
• Base rate: Countries affected by the pause reverted to the baseline 10% tariff rate

This significant policy shift came amid mounting pressure from global leaders and growing concerns about potential recession risks from escalating trade tensions. The announcement triggered enormous relief across global financial markets, with cryptocurrencies moving in strong correlation with traditional asset classes:

• S&P 500: Gained 9.52% (biggest daily advance since October 2008)
• Nasdaq Composite: Soared 12.16% (largest single-day gain since January 2001)
• Dow Jones Industrial Average: Jumped 7.87%

Additional Supporting Factors

While Trump’s tariff pause was the primary driver, several other factors contributed to the positive sentiment in cryptocurrency markets:

1. Regulatory developments: The confirmation of Paul Atkins as the new SEC Chair was viewed positively by crypto investors due to his perceived more favorable stance toward digital assets
2. Ethereum investment vehicles: The approval of options on spot Ethereum ETFs enhanced investment opportunities and institutional interest in the second-largest cryptocurrency
3. Technical factors: The bounce came after several days of selling pressure, suggesting some buyers viewed the lower prices as attractive entry points
4. Short liquidations: The sudden price surge triggered significant liquidations of short positions, further accelerating the upward momentum

Expert Perspectives

Cryptocurrency analysts and market experts offered varied perspectives on the sustainability of the rally:

• Jeff Mei, COO at BTSE: “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.” CoinDesk
• Jupiter Zheng, partner at HashKey Capital: Suggested markets may be reaching a local bottom, noting, “As US regulators continue to streamline regulatory hurdles and implement more favorable policies, it’s possible that Bitcoin and other cryptocurrencies have reached a bottom, assuming no unexpected surprises emerge.” CoinDesk
• Avinash Shekhar, quoted in Economic Times: “Trump’s tariff break has given investors confidence, and the SEC’s confirmation of Paul Atkins and approval for Ethereum ETF options trading have added critical credibility to the crypto ecosystem.” Economic Times

Some analysts cautioned that while the rally was significant, further volatility could be expected given that the tariff pause is temporary and global trade tensions remain unresolved.

Market Outlook

The cryptocurrency market’s strong correlation with traditional financial markets during this episode underscores how digital assets have become increasingly integrated into the broader financial ecosystem. Several factors will likely influence the sustainability of this rally:

1. Duration of relief: The tariff pause is limited to 90 days, meaning trade tensions could resurface when the period expires
2. China relations: The increased tariffs on China (125%) create ongoing economic uncertainty that could affect global markets
3. Regulatory developments: Continued positive regulatory news could provide additional support for cryptocurrency prices
4. Technical factors: Bitcoin’s ability to hold above key support levels will be closely watched by traders

The crypto market’s response to Trump’s tariff pause demonstrates both its reactivity to macroeconomic policy shifts and its increasing correlation with traditional asset classes during periods of significant market stress and relief.

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This episode reinforces the view that cryptocurrencies, despite their original conception as alternative assets independent of traditional finance, now respond significantly to major macroeconomic and geopolitical developments, particularly those affecting global trade and economic growth expectations.