Trump Halt Tariffs for 90 Days Triggering Crypto Traders FOMO

President Donald Trump announced a 90-day pause on tariffs, with the notable exception of China. This decision has triggered an immediate surge in cryptocurrencies and the stock market, as traders exhibit an intense Fear Of Missing Out (FOMO) and rush back into the markets.

This news, though only a short-term fix to a continuing problem, comes after a difficult time. Just two days before, the market saw a false “buy the rumor, sell the news” event, sparked by an incorrect report of a tariff pause on Monday. This was made worse by disappointing news on Tuesday that the United States had increased tariffs on China to 104%.

Crypto Market Resurgence

The recent rise has greatly rewarded traders who wisely bought when prices dropped in the past week. Cryptocurrencies rose sharply on Wednesday after the announcement of the tariff break, not including China.

In a later post, the president allowed an immediate and much lower tariff of 10% during the three-month pause, repeating: “This is a great time to buy.”

Bitcoin climbed from the $76,000 to $77,000 price range to reach $82,000, briefly reaching this level for the first time since Sunday. This 6% jump has made investors hopeful after seeing Bitcoin fall to its lowest price in five months over the weekend.

Other major digital currencies gained even more. Assets like Bitcoin, Ethereum (ETH), XRP, and Solana (SOL) saw increases of 6%- 12% in just one hour. Avalanche’s AVAX, Chainlink’s LINK, Hedera’s HBAR, and SUI rose by more than 10% within the broad-market CoinDesk 20 Index. Ethereum’s ETH also rose, reaching $1,600, an 8% increase simultaneously.

Notably, stock prices soared after these announcements. The S&P 500 (SPX) has climbed about 6% since the announcement.

Trump Hits Hard on China

According to Trump’s statement on Truth Social, the three-month tariff delay and a much lower 10% tariff rate would apply to all countries except China. At the same time, he announced an increase in tariffs on China to 125%, starting right away.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump explained.