In a move that surprised the world, U.S. President Donald Trump announced a 90-day suspension of the tariff war. Thanks to this, experts are witnessing a surge in both cryptocurrency and stock markets. The announcement was made on 9^th April, and within 15 minutes of it, the U.S. stock market saw a $4 trillion boost, whereas the global crypto market enjoyed a $2.5 trillion rally.

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Impact of New Tariffs by U.S. President Trump

Trump announced the new tariffs, which were massively imposed on countries such as Canada, China, Japan, and the European Union. Due to these tariffs, global tension escalated, and several countries imposed their tariffs against the USA in retaliation. This caused sharp sell-offs in the markets. As a result, the U.S. stock market alone lost over $1.5 trillion in value. Apart from that, major cryptocurrencies such as Bitcoin and Ethereum also witnessed a significant price drop.

A Temporary 90-Day Suspension on Tariff War

U.S. President Donald Trump faced severe backlash due to this tariff war, which is why he announced a 90-day suspension on the new tariffs imposed on most countries. Tariffs imposed on China will remain active. This suspension sparked optimism in investors, and within minutes, the bearish market sentiment was reversed. Analysts suggest that this decision will de-escalate the trade tension and may potentially open doors for future global cooperation.

The impact of this 90-day pause was immense and immediate. The U.S. stock market received a $4 trillion boost in capital, whereas the overall cryptocurrency market received a $2.5 trillion boost. The price of Ethereum increased by 15% to over $1,600 while XRP surged by 12%. Bitcoin rose by 7% and regained the $90K levels. As traders rushed to adjust to the bullish momentum, over $587 million was liquidated, and short positions accounted for $374 million.

Final Takeaways!

The broader market reaction suggests renewed investor confidence, with many seeing this as a potential turning point for 2025. Analysts believe the rally could continue if geopolitical tensions continue to ease and economic conditions stabilize. While China remains excluded from the suspension, its recent alliances with neighboring countries could lead to further negotiations. For now, markets are celebrating the pause in hostilities and the renewed optimism that came with it.