Global financial markets staged a dramatic recovery on Thursday, following President Donald Trump’s unexpected announcement of a 90-day delay on most new tariffs, a move that temporarily eased escalating trade tensions and reignited investor confidence.

Bitcoin (BTC) rose 8.9%, climbing to a high of $82,500 before stabilizing near $81,700. Meanwhile, Ethereum (ETH) gained 13.4% to $1,611, and XRP increased by 13%, reflecting a broader rally across digital assets.

Mixed Trade Signals: China Tariffs Climb Despite Global Pause

Despite the freeze on most new tariffs, the U.S. confirmed a sharp 125% tariff on Chinese goods, citing Beijing’s unwillingness to comply with market fairness standards. China countered with an 84% tariff increase on U.S. products.

The administration left existing tariffs on autos, aluminum, and steel in place, while maintaining a 10% levy on a broad range of foreign goods.

Equities and Crypto Climb Together in Historic Session

• S&P 500 rose 9.5%, its largest daily gain since October 2008
  
• Total cryptocurrency market capitalization increased 5.9%, reaching $2.68 trillion
  
• Leading altcoins:
  
  • Flare (FLR): +34.9%
    
  • Ondo (ONDO): +21%
    

High Volatility Drives Nearly $500M in Forced Liquidations

The reversal in sentiment led to widespread liquidations among leveraged traders. Data from Coinglass reported:

• Total liquidations: $487.1 million
  
• Number of traders affected: 131,555
  
• Largest single-day liquidations:
  
  • BTC: $185.2M
    
  • ETH: $138.8M
    

Analysts Warn Risks Persist

Despite the bullish move, some market experts remain cautious.

“This bounce may prove temporary,” said Markus Thielen, Head of Research at 10X Research.
“Macro headwinds such as slowing earnings and geopolitical instability are still very much in play.”

Outlook: Temporary Relief or Longer-Term Shift?

While markets welcomed the delay in tariff implementation, the continued friction with China, combined with upcoming U.S. inflation data and Federal Reserve policy moves, suggest volatility may persist in both equity and crypto sectors.