A surge in crypto stocks, including Strategy’s 25% gain and Coinbase’s 21%, follows President Trump’s announcement of a 90-day pause on punitive tariffs. Bitcoin climbs above $82,000, up more than 6% over the past 24 hours.
Crypto Stocks Soar as Trump Tariff Pause Leads to 25% Gain for Strategy
The recent announcement by President Trump to pause punitive tariffs for most countries for 90 days has led to a surge in crypto stocks, with some experiencing gains of over 20%. This unexpected move has sent the markets into a bull run, with traditional stocks also seeing significant increases.
On December 2, 2019, US President Donald Trump announced a temporary halt to new tariffs on certain Chinese imports.
The decision was made in an effort to avoid further economic disruption during the holiday season.
The tariff suspension applied to around $160 billion worth of Chinese goods, including electronics and clothing.
This move marked a brief respite from the ongoing trade tensions between the US and China, which had been escalating since 2018.
However, the halt was short-lived, as tariffs were reinstated in February 2020.
Key Players in the Crypto Market
Among the movers in the crypto market are Strategy (MSTR), which rose 25%, while Coinbase (COIN) climbed 21%. Marathon Digital (MARA) and Riot Platforms (RIOT) were among the bitcoin miners posting gains in the teens. Semler Scientific (SMLR) and Fold (FLD) also saw advances closer to 10%.
Market Reaction
The strong uptick was in line with the big move in other U.S. stocks — the ‘Nasdaq rocketing more than 10% higher’ and the ‘S&P 500 8%’. Bitcoin climbed above $82,000, up more than 6% over the past 24 hours.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
Created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto, Bitcoin uses cryptography to secure and verify transactions.
The total supply of Bitcoin is capped at 21 million, with new coins created through a process called mining.
As of 2022, Bitcoin has become one of the most widely accepted cryptocurrencies globally, with over 18 million users worldwide.
The Road to Recovery
The big gains come after a panicky few days in markets that nearly turned into a free fall on Monday and again overnight following President Trump’s punitive tariff plan announced last Wednesday. President Trump’s announcement of a 90-day pause has provided much-needed relief, allowing investors to breathe a sigh of relief as the market continues its upward trajectory.
Bitcoin’s price surge is a notable exception to the recent volatility in the crypto markets. The recent decline in ‘bitcoin’ had suggested that the market was under pressure, but the pause in tariffs has led to a significant rebound, with the cryptocurrency climbing above $82,000 and up more than 6% over the past 24 hours.
