Trump’s Tariff Pause Sparks Crypto Rally: XRP Hits $2, Dogecoin Gains 10%

Crypto Markets Roar Back as Trump Hits Pause on Tariffs — Except for China

Bitcoin surged near $82,000 Thursday morning as digital assets rebounded sharply following President Donald Trump’s unexpected decision to ease tariff pressures on global trade partners — with the notable exception of China.

The sudden policy shift injected relief into jittery markets. Trump announced a 90-day suspension of heightened tariffs on all countries that hadn’t retaliated against the U.S., easing fears of a global trade war. China, however, faced a steep tariff hike to 125%, effective immediately.

Crypto markets responded swiftly. Bitcoin rose more than 6% in 24 hours, while major altcoins like XRP and Ethereum’s ETH jumped 12%. Other top performers included Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Dogecoin (DOGE), each climbing close to 10%. The total crypto market cap rose 6%, with the CoinDesk 20 Index posting a 7% gain.

A sharp wave of short liquidations — totaling over $350 million — helped fuel the rally, marking the biggest cleanout of bearish bets since early March. Such liquidations often trigger rapid upward price movements, especially after recent price dips like BTC’s fall to $75,000 earlier in the week.

Mid-cap tokens also saw impressive gains, with Bittensor (TAO), Sonic (S), and Flare (FLARE) soaring up to 30%.

In traditional markets, sentiment mirrored the crypto rally. The S&P 500 posted a 9.5% gain, and the Nasdaq 100 jumped a massive 12%, notching their best days since 2008.

“Markets are optimistic that new trade deals will follow, easing geopolitical tensions,” said Jeff Mei, COO at BTSE. “But the U.S.-China dynamic remains a wild card that could reshape global trade flows dramatically.”

Jupiter Zheng, partner at HashKey Capital, said the market may have hit a local bottom.

“This recovery is being driven by renewed hope that the worst is behind us,” Zheng said. “Continued regulatory progress in the U.S. could set the stage for longer-term crypto growth — assuming no fresh surprises hit the system.”

With Washington signaling a softer stance on global trade (minus Beijing), traders are now watching closely to see if this rally has legs — or if the next shock is just around the corner.