$A tariff pause can have a notable impact on the cryptocurrency market, often mirroring the reactions seen in traditional financial markets. When the United States announced a 90-day tariff pause on most countries (excluding China) on April 9, 2025, the cryptocurrency market experienced a significant rally. Bitcoin, for instance, surged by over 7%, climbing back above the $82,000 mark after a period of decline triggered by initial tariff announcements. Similarly, other major cryptocurrencies like Ethereum, XRP, and Solana also saw substantial gains, with some rising by over 10% in a single day.
This positive reaction stems from the fact that a tariff pause generally reduces economic uncertainty and trade tensions, boosting investor confidence in risk assets, which include cryptocurrencies. The pause is seen as a temporary relief that could prevent further economic slowdown caused by increased trade costs and potential inflation. Consequently, the market often interprets this as a favorable condition for growth, leading to increased buying activity in the crypto space. However, experts caution that this relief might be temporary, and the underlying economic concerns related to tariffs could resurface once the pause period ends, potentially leading to renewed volatility in the cryptocurrency market.