Trump’s latest trade moves have sent shockwaves through both the stock and crypto markets. Let’s break it down:
Trump’s Trade Actions
President Trump announced a 90-day pause on tariffs for many countries (except China!). He also significantly increased tariffs on Chinese goods to 125%, citing a lack of respect for global markets. This follows China’s own recent tariff hikes on US goods. He also authorized a much lower, 10% reciprocal tariff during the 90-day pause period. In short, a temporary reprieve for many, but a big hit for China. Trump even suggested it’s a “great time to buy” stocks.
Market Reactions: Stocks and Crypto Go Up
The news sent markets into a frenzy. The S&P 500 jumped around 6%! The crypto market wasn’t far behind, with the total market cap surging about 5%. Bitcoin, Ethereum, XRP, and Solana all saw impressive gains (6-12% in just an hour!).
Bitcoin’s Big Jump
Bitcoin was a star performer, rocketing from around $76,000-$77,000 to over $82,000 – its highest point since Sunday. This 6% surge is a huge turnaround from its recent five-month low. The price had dipped to $74,000 earlier this week, fueled by the ongoing trade tensions. This recent jump also led to a significant number of Bitcoin shorts being liquidated – about $75,000,000 worth in just an hour. While the price is now slightly down from its peak, it’s still a major win for Bitcoin investors.
