XRP Jumps to $2, Dogecoin Surges 10% as Trump’s Tariff Pause Riles up Bitcoin Prices

Bitcoin (BTC) surged to nearly $82,000 early Thursday, sparking a broad cryptocurrency market rally. This followed a significant reversal in tariff policy on Wednesday, driven by President Trump's decision to change course on a global tariff increase. This relief in broader equity markets fueled the crypto surge.

XRP and ether (ETH) led the gains among major cryptocurrencies, each rising by 12%. Cardano's ADA, BNB Chain's BNB, Solana's SOL, and dogecoin (DOGE) all saw increases of up to 10%. The overall market capitalization climbed 6%, with the CoinDesk 20 (CD20) index showing a 7% increase.

Crypto futures markets saw over $350 million in short liquidations, the highest level since early March. This helped to mitigate losses from the previous Monday and Tuesday, when Bitcoin briefly dipped to nearly $75,000. As CoinDesk previously noted, such liquidation events can often present buying opportunities, suggesting a potential price correction and market overextension.

Among mid-cap cryptocurrencies (those with a market capitalization below $5 billion), Bittensor's TAO, Sonic's S, and Flare's FLARE saw impressive gains, rising as much as 30%.

Thursday's rally coincided with President Trump's decision to temporarily pause increased tariffs on all countries except China, where the levy was raised to 125%. This followed growing global concerns and recession fears. Countries previously subject to reciprocal tariffs will now revert to the earlier 10% baseline rate.

The positive news led to a significant rebound in US stocks, marking their best rally since 2008. The S&P 500 Index soared 9.5%, recovering from bear market territory, while the Nasdaq 100 surged 12%.

Traders remain attentive to further developments, given the ongoing uncertainty.

Jeff Mei, COO at BTSE, commented in a Telegram message to CoinDesk: “The market is rallying on anticipation that most trading partners will negotiate trade deals with the US, avoiding a full-fledged trade war. That being said, continued tariffs against China and vice versa will lead to a realignment of global trade that could drastically change how the world operates. We remain cautious until we see the consequences of this play out over the coming months.”

Jupiter Zheng, partner at HashKey Capital, suggested the markets may have reached a local bottom: “The upswing was fueled by optimism that the worst may be behind us. While potential headwinds remain, such as retaliatory tariffs from China in response to Trump's 125% increase, the start of negotiations with other countries offers some hope.” He further added: “As US regulators continue to streamline regulatory hurdles and implement more favorable policies, it's possible that Bitcoin and other cryptocurrencies have reached a bottom, assuming no unexpected surprises emerge. The industry may not have fully priced in these developments, leaving room for potential growth.”