TLDR
- Bitcoin price jumped 7% to $82,000 after Trump announced a 90-day pause on tariff hikes for most countries except China
- Trump raised tariffs on China to 125% while maintaining a 10% duty on all other imports
- Other cryptocurrencies including Ethereum, XRP, and Solana also rallied up to 10%
- Global crypto market capitalization increased by 7% to approximately $2.61 trillion
- Bitwise maintains its prediction that Bitcoin could reach $200,000 by the end of the year despite trade tensions
Bitcoin price jumped 7% on Thursday, reaching $82,000 after US President Donald Trump announced a 90-day pause on planned tariff hikes for most countries. The world’s largest cryptocurrency by market capitalization traded as high as $83,453 during intraday trading, recovering from a five-month low hit earlier in April.
The pause on tariffs excluded China, which faced increased duties of 125% after Beijing retaliated with an 84% duty on US imports. The baseline 10% tariff on all other countries remains in place, indicating that trade tensions continue despite the temporary relief.
The price surge coincided with a broader risk-on mood in financial markets, as Trump’s announcement gave countries more time to negotiate new trade deals with the US. This helped ease concerns about immediate disruptions to global supply chains and economic growth.
Altcoins Follow Bitcoin’s Rally
Other cryptocurrencies also experienced strong buying action following the news. Ethereum, the second-largest cryptocurrency, rose nearly 10% to $1,610.55. XRP jumped 10.1%, while Solana and BNB increased by 10% and 5% respectively.
Dogecoin saw a nearly 10% increase after fund manager 21Shares announced an application to list an exchange-traded fund tracking the popular memecoin in US markets. Such a development could potentially attract billions in institutional investment to the memecoin.
The overall global cryptocurrency market capitalization increased by 7% to approximately $2.61 trillion, reflecting renewed interest in digital assets as risk appetite improved.
Trade War Implications for Bitcoin
Despite the temporary pause in tariff hikes for most nations, the escalating US-China trade conflict continues to create uncertainty in markets. Both nations implemented new tariffs on Thursday, with little sign that either side intends to back down.
Bitcoin’s gains lagged behind those seen in equity and currency markets. Crypto markets were also impacted by news that Strategy, the world’s largest corporate Bitcoin holder, reported a steep loss on its digital asset holdings.
However, some analysts believe the trade tensions could ultimately benefit Bitcoin in both the short and long term. According to Bitwise chief investment officer Matt Hougan, the Trump administration’s desire for a weaker dollar could be positive for Bitcoin.
“Dollar down equals Bitcoin up,” Hougan stated in an April 9 blog post. “I expect this pattern will continue.”
Bullish Outlook Amid Uncertainty
Bitwise is maintaining its December prediction that Bitcoin could reach $200,000 by the end of the year. Hougan suggested that disruption to the global reserve currency system creates opportunities for alternative reserve assets like Bitcoin and gold.
He cited recent comments from Steve Miran, chairman of the White House Council of Economic Advisers, who criticized the dollar’s reserve status as causing “persistent currency distortions” and “unsustainable trade deficits” that have “decimated” US manufacturing.
Crypto trader Will Clemente shared a similar view on social media, stating that “Bitcoin will be the fastest horse” coming out of the current market drawdown. He added that “economic uncertainty and deglobalization are positive for Bitcoin.”
The price surge has helped Bitcoin recover some of its recent losses. The cryptocurrency has experienced a correction of around 32% from its January 20 all-time high, which analysts note is in line with pullbacks seen in previous bull market cycles.
CoinDCX Research Team analysts observed that “the cryptospace is recovering after the recent bloodbath as Bitcoin rises above the pivotal resistance at $81,800.” They added that “even though the bears tried to restrict the rally, the bullish momentum is expected to prevail for a while.”
Some lesser-known cryptocurrencies posted even stronger gains. According to CoinSwitch Markets Desk, tokens like Fartcoin, Flare, Pendle, and Ondo saw increases ranging from 22% to 44%.
Despite these positive signals, market participants remain cautious about the sustainability of the current rally given the ongoing trade tensions between the US and China and their potential impact on global economic growth.
The US Dollar Index, which compares the value of the US dollar to a basket of six major currencies, has fallen more than 7% since the beginning of 2025. This trend could continue to support Bitcoin prices if historical correlations hold.
There are also reports that China and Russia are settling some energy trades in Bitcoin as Trump’s trade war escalates, potentially increasing demand for the cryptocurrency in international commerce.
Bitcoin’s current price of $81,700 represents a 7.5% increase over the past 24 hours, showing strong recovery momentum but still well below its all-time high.
