As Donald Trump, the US President, declared a tariff suspension for countries other than China, cryptocurrency prices have simultaneously surged. Bitcoin (BTC), which had plummeted to the $74,000 range just three days ago after collapsing below $80,000, instantly rose to the $83,000 range.
According to the global cryptocurrency market site CoinMarketCap, as of 8 AM on this day, BTC was traded at $83,034.72, up 8.26% from 24 hours ago.
The altcoin surge is even steeper. At the same time, the altcoin leader Ethereum (ETH) sharply rose 13.87% to $1,671.07, XRP increased 15.52% to $2.06, and Solana (SOL) also recorded a 13.51% increase to $119.25.
The domestic exchanges are also experiencing a rising market. On Bithumb, BTC recorded a 6.05% increase from the previous day at 122.27 million won. ETH rose 11.75% to 2,463,000 won, and XRP is trading 11.95% higher at 3,045 won.
The simultaneous surge in cryptocurrency prices is interpreted as being influenced by President Trump's remarks on reciprocal tariffs. On the 9th (local time), Trump announced that he would suspend reciprocal tariffs for 90 days for countries other than China, just 13 hours after the tariffs began. He specifically stated that tariffs on China would be raised to 125%, while other countries would only be subject to a basic 10% tariff.
Consequently, the New York stock market soared record-breakingly. On the 9th (local time), the Dow Jones Industrial Average rose 7.87%, the S&P 500 increased 9.52%, and the Nasdaq Composite, which focuses on tech stocks, surged 12.16%. According to CNBC, the S&P 500's rise that day was the largest since 2008 and the third-largest since World War II. The Dow Jones saw its largest increase since March 2020, and the Nasdaq since January 2001.
Zahir Ebtikar, founder of cryptocurrency fund Split Capital, said, "Over the past two weeks, the administration has shown a firm stance on tariffs daily, but the president changing his tariff position so quickly clearly shows flexibility," adding, "The market will adapt to the new environment." He further commented, "The price increase means Bitcoin is being traded like a risk asset" and that "this is the market's signal that people are willing to take on more risk."
The Crypto Fear and Greed Index from cryptocurrency data analysis company Alternative.me remains in the 'fear' stage, dropping 6 points from the previous day to 18 points. The Fear and Greed Index indicates that the closer to 0, the more constrained the investment sentiment, while closer to 100 indicates market overheating.
- Reporter Shin Jung-seop
- jseop@sedaily.com
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