When Donald Trump announced a 90-day pause on tariffs for most U.S. trading partners, the market reaction was instant. Stocks surged. Crypto soared. And within minutes of the post going live on Truth Social, some of the biggest indexes in the world flipped green – hard.
The Dow jumped nearly 2,000 points. Nasdaq climbed more than 8%. Even the S&P 500, which had looked shaky for weeks, exploded with a 6.7% rally. That kind of bounce doesn’t happen unless traders see something big.
Crypto wasn’t left behind either. Bitcoin broke above $82,000, Ethereum surpassed $1,600, and several altcoins made double-digit gains. After the last days full of uncertainty, it suddenly felt like optimism had found a way back into the room.
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Is This a Turning Point or Just a Pause?
We want to be optimistic, but we don’t think we’re in the clear yet.
The 90-day pause doesn’t mean the trade war is over. If anything, Trump has just drawn a sharper line: cooperate and you get a break, retaliate and you face the full weight of U.S. tariffs. That might ease tensions in the short term, but it also increases pressure on countries like Japan, India, and even the EU to pick a side. And that could get messy fast.
There’s also the China angle. With Trump raising tariffs on Chinese goods to 104%, Beijing fired back quickly – an 84% tariff on U.S. imports. Trump responded by raising the tariffs even further, to 125%. That response didn’t seem to rattle the markets too much today, but if this escalates further, the optimism we’re seeing now might fade just as quickly.
And then there’s inflation. If companies start raising prices because of these new duties, the Federal Reserve might be forced to hold off on rate cuts – or worse, start talking about hikes again. That would hurt both stocks and crypto.
What This Means for Investors
If you’re holding crypto, this bounce feels good. The last few days, the mood was pure panic. Now we’re talking about fresh highs again. But don’t assume we’re heading straight back into a full bull market.
This feels more like a reset – a chance for investors to reposition, re-evaluate, and maybe rebuild confidence. Whether or not that lasts depends on what comes next from both Trump and the countries he’s pressuring.
In the short term, expect more volatility. Any unexpected move – from Trump, China, the EU, or even the FED – could flip sentiment fast. But also keep an eye on volume. Today’s buying wasn’t just small traders chasing headlines – big players were moving in too.
Final Thoughts
If the next few weeks bring even a hint of progress in trade talks, we could see more rallies like this. And if crypto keeps decoupling from stocks – staying strong even when Wall Street dips – it might finally start carving out its own path.
But it’s way too early to say everything will be fine now. There is still a lot of uncertainty about the final shape of tariffs, and the current news is just a 90-day pause – not a full retract.
Read also: Larry Fink Warns Bitcoin May Overtake the Dollar – Here’s Why
