The US president Donald Trump’s decision to halt tariffs on the majority of countries for 90 days caused a significant spike in cryptocurrency markets on Thursday. The gain in equity markets was viewed as a much-needed reprieve for riskier asset classes. Cryptocurrency markets followed suit, with some coins soaring up to 45% in the past day.
The biggest cryptocurrency, Bitcoin, rose more than 10% in just 24 hours from its day’s low of $75,754.06 to $83,541 on Thursday, with a total market capitalization of $1.7 trillion. In the past day, more than $77.65 billion worth of bitcoins have been traded. It somewhat forfeited its profits, though.
According to Alankar Saxena, co-founder and CTO at Mudrex, investor sentiment improved when Trump declared a 90-day halt on reciprocal tariffs, which caused the cryptocurrency market to rise sharply. He stated that the positive trend was further bolstered by the confirmation of Paul Atkins as the new chair of the SEC by the US Senate.
“Ethereum gained popularity after the SEC authorized options on spot Ethereum ETFs, increasing institutional traders’ interest in investing in Ether. With support at $80,000 and the next significant resistance at $88,600, a rally to $100,000 for Bitcoin is once again possible if the momentum holds, Saxena continued.
Ethereum, XRP, BNB, Solana, Dogecoin, Tron, Cardano, and other significant cryptocurrency tokens saw a 6–10% increase during the day. Other altcoins, such as Ondo, Flare, Sonic, and Fartcoin, increased by 15–45% over the past day. However, several currencies had a 10% daily decline, including Zcash, Tezos, Toncoin, and Four.
A bullish bounce in Dogecoin, Ethereum, and Bitcoin has been sparked by some positive news. According to Avinash Shekhar, co-founder and CEO of Pi42, the cryptocurrency ecosystem has gained crucial credibility thanks to Trump’s tariff break, the SEC’s confirmation of Paul Atkins, and its clearance for Ethereum ETF options trading.
The momentum among the leading cryptocurrencies suggests that we may be entering a new period of widespread adoption and long-term growth in the digital asset space, he said, as regulatory clarity continues to increase and macroeconomic conditions stabilize.
The worldwide cryptocurrency market capitalization was $2.65 trillion, up 7% from the previous day, according to the report. The entire value of the cryptocurrency market during the past day has increased by 23.24% to $159.03 billion. Over the day, Bitcoin’s share of the market fell slightly to 62.53 percent.
The recovery of Bitcoin demonstrates the asset class’s increasing maturity and investor trust. Bullish sentiment is also indicated by a spike in trading volume and the closing of about $94 million in short sales, according to CoinDCX co-founder Sumit Gupta. According to him, we are living through an important period in the development of cryptocurrency as a popular financial asset.
According to Piyush Walke, a derivatives research analyst at Delta Exchange, US politicians are trying to expedite crypto legislation as the DOJ suggests a retreat on enforcement. With the price recovery in the cryptocurrency markets, a notable decline in the monthly IV is apparent. The market is clearly seeing this as a rollback of tariffs, which should cause some price action to rise, the report stated.
