Bitcoin rebounded sharply on Wednesday, climbing above $82,000 after U.S. President Donald Trump announced a 90-day suspension of tariffs for most of America’s trading partners, excluding China. The move injected a dose of optimism into global markets that have been rattled in recent months by escalating trade tensions and economic uncertainty.
The world’s largest cryptocurrency gained 8.87% in 24 hours, triggering over $75 million in short liquidations, as traders rushed to cover bearish positions amid renewed market momentum. The broader crypto market also rallied, with global market capitalization rising to $2.59 trillion, up 8.40% on the day.
Crypto Markets Lead the Comeback
Bitcoin’s surge led the digital asset space, with altcoins following in step. Analysts say the rally could mark the beginning of a broader bull cycle, noting that the second quarter of the year has historically delivered strong performance for crypto markets.
“This type of coordinated policy shift has the potential to unlock market optimism and liquidity,” said a crypto strategist at a leading digital asset firm. “We’re seeing that play out now with Bitcoin’s resurgence.”
Institutional Confidence Grows
Despite a 26% drop from its January peak, analysts at investment firm Bernstein described the recent correction as “mild” compared to previous crypto downturns that saw losses as high as 70%. Bitcoin’s ability to weather such dips signals increasing maturity and institutional support.
Market participants are now awaiting signals from U.S. Federal Reserve Chair Jerome Powell on potential monetary easing or rate cuts, which could further buoy crypto prices and investor sentiment.
A Temporary Relief for Global Trade
Trump’s tariff moratorium has been welcomed by financial markets, as it offers a diplomatic window for trade negotiations. Countries that actively engaged with Washington on trade disputes were granted the 90-day reprieve, creating room for potential long-term resolutions.
However, China remains excluded from the measure and continues to face steep tariffs. The exclusion follows Beijing’s retaliatory tariffs on U.S. goods, announced just a day before Trump’s announcement. These actions had previously driven bearish sentiment in the options market, with the Bitcoin delta skew reaching 12%, reflecting market concern over downside risks.
Following the tariff pause, that sentiment quickly reversed. The delta skew fell back to 3%, indicating a more balanced outlook between upward and downward price movements.
Outlook and Market Caution
While the short-term sentiment is clearly bullish, experts caution that the exclusion of China from the reprieve suggests continued geopolitical friction. “This is a tactical pause, not a full resolution,” one analyst noted. “Investors should remain alert to developments in U.S.-China relations, which could still influence market direction.”
