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Bitcoin rose sharply on Thursday, rebounding from recent lows after U.S. President Donald Trump postponed the implementation of steep reciprocal tariffs on most major economies. The move briefly lifted market sentiment and triggered a broader rally in risk assets, although lingering concerns over the escalating U.S.-China trade war limited crypto’s upside.
By 01:56 ET (05:56 GMT), Bitcoin was up 7% at $82,146.2, climbing back above levels last seen before the latest market selloff and recovering from a five-month low hit earlier in April.
Bitcoin Tracks Market Rally After Tariff Delay
The surge in Bitcoin prices came amid a risk-on wave across global financial markets, following Trump’s announcement late Wednesday that he would grant a 90-day extension to the rollout of additional tariffs. The delay gives affected countries more time to negotiate trade deals with the U.S., temporarily easing fears of immediate supply chain disruption.
However, the relief was not extended to China, as Trump proceeded to increase tariffs on Chinese goods to 120%, escalating an already tense standoff. Beijing responded by reaffirming its 84% retaliatory tariffs, indicating that a resolution remains elusive.
While the temporary reprieve boosted equities and risk currencies, crypto markets lagged the broader rebound, reflecting caution among digital asset investors.
Strategy’s Bitcoin Loss Still Weighs on Crypto Sentiment
Crypto sentiment remained fragile after Strategy (NASDAQ:MSTR)—the largest corporate holder of Bitcoin—recently reported a steep unrealized loss on its digital asset holdings. This has raised concerns about potential large-scale liquidations or weakened institutional confidence in Bitcoin during times of macroeconomic stress.
Trade War Risks Linger Despite Relief Rally
Even as Trump’s delay offered markets a breather, analysts warned that the core threat of a full-blown U.S.-China trade war remains intact. Tariffs from both nations officially went into effect Thursday, with the U.S. now applying 120% duties on Chinese imports.
“The fact that China was excluded from the tariff extension signals that tensions remain high, and further escalation is possible,” analysts noted. “Any optimism must be tempered by the reality that both sides appear entrenched.”
Investors also remained wary of Trump’s unpredictable policy swings, given that just hours before the extension was announced, there had been no indication he would walk back on the tariffs. This policy volatility continues to inject uncertainty into markets, especially speculative sectors like crypto.
Outlook: Crypto Eyes Trade Talks and Fed Signals
With global markets still digesting the evolving tariff landscape, crypto traders are looking ahead to potential developments in U.S.-China trade negotiations, as well as monetary policy cues from the Federal Reserve amid rising recession risks.
While Bitcoin has regained ground, its underperformance relative to traditional risk assets suggests that further gains may be capped unless clear progress is made on trade or broader market sentiment improves significantly.
