Why “Trump Pauses Tariffs” Matters for Crypto

Source:https://www.abc.net.au/news/2025-04-10/trump-pauses-reciprocal-tariffs-what-we-know/105159728

While tariffs may seem disconnected from blockchain, Trump’s announcement is part of a broader shift in U.S. economic and trade policy that has direct implications for digital assets. The suspension of tariffs signals a more risk-on environment for global investors, encouraging capital flows into high-growth sectors—especially cryptocurrencies.

Following the announcement:

• Bitcoin surged from below $77,000 to nearly $83,000 in 24 hours.

• Ethereum and Solana gained over 7% each.

• XRP briefly crossed the $2.00 mark, its highest in months.

Clearly, the phrase “Trump pauses tariffs” has become more than a trade headline—it’s a market signal.

A Boost for Risk Assets

Tariff tensions often suppress investor appetite for volatile or non-traditional assets. By reducing geopolitical friction, the 90-day suspension has created a tailwind for risk-on sentiment, with crypto among the top beneficiaries.

More importantly, Trump’s economic team has hinted at pro-crypto regulation rollbacks, including the reversal of IRS rules that would have burdened decentralized finance (DeFi) platforms. These regulatory shifts, combined with the tariff pause, paint a clearer picture: the Trump camp is aligning itself with crypto-friendly policies.

Market Interpretation: More Than Just a Relief Rally?

Analysts believe this move is not just a one-off boost for Bitcoin and altcoins, but potentially the beginning of a trend of favorable conditions for digital assets under a second Trump administration.

Here’s why it matters:

• Trade policy affects liquidity: Lower friction in global trade can result in increased capital movement—some of which may flow into crypto markets.

• Macro stability encourages crypto allocation: With less economic uncertainty, institutional and retail investors are more likely to take positions in digital assets.

• A signal of deregulatory intent: Trump’s prior track record and current rhetoric suggest fewer restrictions on blockchain innovation.

What to Watch Next

While the “Trump pauses tariffs” news sparked a market rebound, the crypto space remains sensitive to:

• Whether the 90-day pause becomes permanent

• Fed interest rate changes

• Regulatory signals from both the Trump and Biden camps

• Ongoing tensions with China, which may impact mining and supply chains

Conclusion

As geopolitical uncertainty gives way to temporary relief, the crypto industry stands to benefit from increased momentum, improved sentiment, and a potentially pro-blockchain policy framework under Trump’s influence.

For now, “Trump pauses tariffs” isn’t just a headline—it’s a bullish catalyst for Bitcoin, Ethereum, and the broader crypto ecosystem.