The pause of tariffs and crypto showing signs of recovery

The recent pause in tariffs by the U.S. administration, announced by President Donald Trump, has had a significant impact on both traditional markets and cryptocurrencies.

President Trump authorized a 90-day pause on new tariffs and reduced existing reciprocal tariffs to 10% for countries that have not retaliated against the U.S. However, tariffs on Chinese goods were increased to 125%.

The announcement led to a sharp rally in U.S. stock indices, with the S&P 500 jumping over 8% and the Nasdaq gaining more than 10%. This move was seen as a strategic maneuver to calm market fears of a prolonged trade war and potential global recession.

Following the tariff pause, Goldman Sachs rescinded its recession forecast, reflecting a shift in market sentiment from bearish to cautiously optimistic.

The price of Bitcoin surged, rising about 6% to nearly $82,000, while other cryptocurrencies like Ethereum and Solana saw gains exceeding 10%. The global crypto market experienced a one-day increase of over 7%.

Shares of companies tied to cryptocurrencies, such as MicroStrategy and Coinbase, also saw significant gains, with some stocks rising by as much as 24%.

The recovery in cryptocurrencies was welcomed by investors, who viewed the tariff pause as a positive development for global financial markets.

Despite the current rally, market uncertainty remains due to ongoing tensions with China.

Analysts are now eyeing a $100,000 target for Bitcoin, reflecting renewed optimism in the cryptocurrency market. However, the path forward remains uncertain, with factors like China's response and broader economic conditions playing significant roles.

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