Bitcoin, the world’s largest cryptocurrency by market cap, jumped nearly 5% today, reaching an intraday high of $81,798 on the Bitstamp exchange.
The rally follows the U.S. government’s decision to implement a 90-day tariff pause for countries that have not retaliated against American trade measures. However, tariffs on China were sharply increased to 125%.
Treasury Secretary Scott Bessent emphasized that non-retaliating nations will be “rewarded” and denied that the move was influenced by recent market turbulence.
Equity markets also reacted positively. The S&P 500 climbed 6%, while the tech-heavy Nasdaq-100 surged by 8%, outpacing Bitcoin’s gains. Shares of Bitcoin-linked companies rallied sharply, with Strategy (MSTR)—the largest corporate Bitcoin holder—soaring nearly 20%.
Trading platforms Robinhood (HOOD) and Coinbase (COIN) also saw strong gains of 17% and 13%, respectively.
Weiss Crypto, the digital asset arm of Weiss Ratings, noted that despite market uncertainty, a relief rally remains likely. “Liquidity has been rising all year, and that’s typically a sign a rally is coming—it just needs a trigger,” the firm stated.
While a potential interest rate cut by the Federal Reserve could be that catalyst, expectations for a cut at the next Fed meeting have dropped significantly after the recent policy pivot.
Image Credit: Pixabay
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