Bitcoin surged back above the $80,000 mark as major U.S. stock indices experienced a significant rise following President Donald Trump’s announcement of a temporary halt to the administration’s tariff policies for select countries.
On Wednesday afternoon, Bitcoin (BTC) was trading over $81,000 while the Nasdaq index approached a remarkable 10% gain, as the latest communication from the White House helped stabilize markets that had been shaken by fears of an extended and aggressive trade conflict.
In a message posted on his Truth Social platform, President Trump stated that several nations had reached out to pursue discussions regarding trade, tariffs, and currency matters. Consequently, he has implemented a 90-day pause on the introduction of new tariffs, coupled with a temporary cut in the existing reciprocal tariff rate to 10%.
However, the administration will be increasing tariffs on China to 125%, with the change taking effect immediately.
The yield on the 10-year Treasury, which had earlier risen above 4.5%, dipped back to 4.4% in light of the news.
Trump’s unexpected shift came after four days of market turbulence caused by uncertainty regarding U.S. trade strategy. Earlier in the week, stocks faced their worst multi-day decline since the Great Financial Crisis as investors grappled with potential global recession risks linked to escalating tariffs.
Treasury Secretary Scott Bessent announced that he would spearhead upcoming tariff discussions. Wall Street views Bessent’s participation as a calming influence, favoring his moderate stance over the more aggressive approaches of Commerce Secretary Howard Lutnick and trade advisor Peter Navarro.
Trump also took to Truth Social early on Wednesday to encourage investors to “stay calm,” adding: “This is an excellent time to make purchases.”