Bitcoin Surges Above $80,000 After Markets Experience ‘Amazing Jump'
Bitcoin prices rallied today, climbing over 10% in under 24 hours after President Donald Trump's announcement that he would 'pause' tariffs caused an 'amazing jump' in the global asset markets, according to analyst Tim Enneking.
The digital currency rose to roughly $83,000 this afternoon, according to Coinbase data from TradingView. The benchmark S&P 5oo index and the Dow Jones Industrial average also experienced sharp gains, rising more than 9% and 7% during the day, according to data from Google Finance.
In addition, many altcoins underwent notable price increases, rising between 10% and 30% in the space of 24 hours, CoinMarketCap figures show. The TikTok influencer who goes by Wendy O commented on the situation, emphasizing 'across the board' gains in these cryptocurrencies.
When asked whether Trump's policy change triggered the latest gains in bitcoin, Enneking, managing partner of Psalion, stated via email that 'Yes, the 90-pause was hugely important and the sole proximate cause of the amazing jump across almost all markets in two ways.'
'The first was what we just witnessed: immediately concerns regarding the absurdly high tariffs have now been removed (with the major exception of China, where the tariffs actually got worse),' Enneking said after Trump posted via social media network Truth Social that while he would start imposing a tariff of 125% on China, tariffs on other countries would drop to 10%.
'More importantly, however, was the fact that Trump and most (but not all) of his administration's representatives have insisted that the tariffs were immutable and not a bargaining tool,' he stated.
'No one really believed that in their heart of hearts, knowing Trump's negotiating 'style,' but the fear that tariffs were 'here to stay come may' was starting to gain traction – and markets were pummeled as a result," Enneking added.
'Now we know it is possible to persuade Trump to back down, which means that we're back to tariffs as a bargaining tool. The sign of relief from seeing a solid example of that fact can literally be heard around the world!' he said.
When asked whether Trump's tariff announcement was the cause today's bitcoin gains, Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered a similar take.
'Yes, we agree that Bitcoin's rally reflects the broader risk-on mood sparked by Trump's tariff pause, which markets interpreted as a temporary easing of trade tensions," he said via email.
However, he emphasized that bitcoin has been displaying a high correlation to other risk assets like stocks. This development contrasts with earlier times, when the digital currency didn't follow the price movements of assets like stocks.
'Despite being touted as a hedge or store of value, Bitcoin continues to behave like a high-beta risk asset—often outperforming during bursts of macro optimism," said DiPasquale.
"Today's move was less about crypto fundamentals and more about a broad shift in sentiment across equities and digital assets.'
Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, also offered his perspective on the situation, offering his views via email.
'Earlier today, Trump announced a 90 day pause on most of the tariffs besides China. This caused an immediate spike in risk-on assets across most markets, including Bitcoin, that resulted in one of the 10 best percentage returns day in the history of the S&P 500,' he stated.
'This is likely a combination of short-term oversold conditions, short covering, and reassessment after the worst-case scenario was already being priced in,' said Sifling.
'We expect the volatility is likely to continue, as this story is continuing to develop," he concluded.
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