Trump Tariff Pause Triggers 5.5% Crypto Surge Amid Doubts

Key Points

• Trump Tariff Pause Triggers 5.5% Crypto Surge Amid Doubts
• Bitcoin reclaims $80K as global crypto market cap rises 5.5%
• Trump’s tariff delay creates short-term investor optimism
• Analysts warn of a ‘dead cat bounce’ trap for retail traders
• Fed stimulus rumors revive Bitcoin’s $250K end-of-year forecast

President Donald Trump’s 90-day pause on most tariffs has sent shockwaves through the global financial markets—stocks, bonds, the dollar, and notably, crypto are all rallying. Bitcoin (BTC) jumped past $80,000, pulling the overall crypto market up by 5.5% in just 24 hours.

Top 10 Cryptocurrencies Market Performance. Source: Techtoken

This surprising boost follows Trump’s earlier imposition of sweeping tariffs, including a harsh 104% tariff on Chinese imports. That move had triggered a deep market sell-off. But now, the unexpected pause—excluding China—has injected new hope among investors.

Even Ethereum (ETH), XRP, and Solana (SOL) saw double-digit gains, as traders rushed back into crypto amid growing optimism.

Still, experts are urging caution.

Jacob King, CEO of WhaleWire, described the rally as a “dead cat bounce”—a temporary rise after a big drop, only to be followed by another crash.

Exactly as predicted, we’ve officially entered the dead cat bounce phase: delay the tariffs, bait the retail crowd back in, and set the stage for the next red wave.

In the coming weeks, retail will pile in—all while institutions quietly dump their bags. Don’t forget the long…

— Jacob King (@JacobKinge) April 9, 2025

The market optimism could be short-lived, especially if retail investors flood in just before another major correction.

Professor Steve Hanke echoed similar doubts, warning that unless Trump backs away from tariff escalation, the rally may collapse as quickly as it started.

The market rallied on Pres. Trump’s announcement of a 90-day pause on the imposition of tariffs on many countries—except China.

If Trump continues to play his tariff cards, the rally will represent nothing more than a dead cat bounce. pic.twitter.com/fyCjQeIGnv

— Steve Hanke (@steve_hanke) April 9, 2025

Could This Time Be Different for Crypto?

Not everyone is convinced it’s a fakeout. Amit, a well-followed market analyst, argued this bounce may actually be the real deal.

this is the 90 day dead cat exit bounce.

sell in may and go away.

— exploit (@exploitxbt) April 9, 2025

According to him, the tariffs were already baked into market expectations. A 90-day pause that turns into a long-term deal with China could actually bring stability. That, in turn, would give markets—including crypto—a real reason to rally.

He also pointed out that U.S. jobs data remains strong, meaning the economy might absorb the impact better than expected.

So, is this a trap or a turning point?

the last bounce was based off nothing fundamental which is why it became a dead cat

the difference here, and why selling into the rip *might* not be the best, is that if tariffs are truly delayed — well folks we have a fundamental catalyst for the markets

which is that the…

— amit (@amitisinvesting) April 9, 2025

Interestingly, Google Trends shows a surge in searches for “dead cat bounce”, reaching levels not seen since the COVID crash in 2020. Back then, Bitcoin and stocks staged a massive V-shaped comeback thanks to aggressive Fed stimulus.

Now, whispers are growing louder: could the Fed return to quantitative easing (QE)?

Yeah but we also have sold off a TON assuming these tariffs would be on effect

Jobs data is fine

If the tariffs arent the issue, not saying we need to visit 7000 spx anytime soon, but it may not be a deadcat given this catalyst could be long lasting

— amit (@amitisinvesting) April 9, 2025

If it does, crypto could enter a new bull phase. Arthur Hayes, former BitMEX CEO, has even predicted that Bitcoin could hit $250,000 by the end of 2025, if the Fed goes back to printing money.

“If QE is revived, we could see the same explosive rally we did during the pandemic,” analysts say.

Dead Cat Bounce Search Trends. Source: X/JEllulz – Techtoken

Trump’s Complex Relationship with Crypto Unfolds

This market reaction also highlights Trump’s growing impact on digital assets. The Trump Tariff Pause is just the latest example in a string of crypto-related actions shaping investor sentiment.

From his past comments about Bitcoin outlasting the US dollar, to his recent pro-Bitcoin mining stance, Trump continues to play an increasingly visible role in the crypto conversation.

He even made headlines earlier this year by pardoning BitMEX founders, signaling a surprisingly soft approach toward some figures in the industry. This has raised questions about whether his policies are part of a broader political crypto play.

Some believe Trump may be aligning with other pro-crypto leaders like El Salvador’s Nayib Bukele, with comparisons drawn in their shared support for Bitcoin.

But not all of Trump’s crypto involvement has been positive. Just weeks ago, his crypto corruption warning sparked fears of market manipulation, leaving many in the space wary of sudden regulatory or policy reversals.

With the 2024 election cycle heating up and Trump front and center in both political and financial headlines, his decisions—whether on tariffs or crypto—are likely to remain a major driver for the market’s next moves.