In a surprising twist, bitcoin surged past $83,000 on Wednesday after President Donald Trump announced a sharp tariff hike on China.
The move, seen as part of the ongoing trade war between the two superpowers, triggered a positive wave across crypto and traditional markets.
Trump, speaking via his Truth Social platform, declared an immediate increase in tariffs on Chinese imports, raising them to a whopping 125%. The decision came after what he described as China’s “lack of respect” for global markets.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” he wrote.
At the same time, the president introduced a 90-day pause on certain import duties for other nations, reducing reciprocal tariffs to 10%. Over 75 countries are said to be in talks with the U.S. over trade terms, according to his post.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day pause, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump added.
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Crypto market rallies on U.S. tariffs development
Bitcoin didn’t waste any time reacting. Within minutes of Trump’s announcement, the price jumped over 8%, reclaiming the $83,000 mark after dipping below $75,000 earlier in the week.
Ether (ETH) followed with a 14% rally above $1,670, while altcoins like Solana (SOL) and XRP posted double-digit gains. Accordingly, the global crypto market cap surged past $2.7 trillion, representing a 6.5% rise in the past 24 hours. This sudden market reversal came despite the tension in international trade, showing just how reactive and unpredictable crypto markets can be.
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Wall Street joins the party
The optimism wasn’t limited to crypto. U.S. stock indexes like the S&P 500, Nasdaq, and Dow all rose over 5% shortly after Trump’s tariff news broke. Data from Yahoo Finance showed a sharp uptick in equities, indicating investor enthusiasm or perhaps confusion about the state of the global economy.
However, traders now turn their focus to macroeconomic data. Particularly, minutes from the March Federal Open Market Committee (FOMC) meeting, due Wednesday afternoon, and Thursday’s Consumer Price Index (CPI) figures could further determine the financial market direction.
Notably, several analysts note that these events might kickstart a broader market rebound, possibly lasting several weeks.
Still, not everyone is cheering. Federal Reserve Chair Jerome Powell has previously warned that aggressive tariff policies could backfire. Higher inflation and slower growth could become serious risks if trade tensions continue.
For now, BTC and crypto investors are riding high, fueled by political drama and shifting trade policies. But with more data on inflation and consumer sentiment due later this week, markets may yet face new surprises. As always in crypto, volatility is the only constant.
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