U.S. President Trump's 90-day suspension of punitive tariffs triggered a sudden reversal in asset prices, with the S&P 500 index surging nearly 10%, and the Nasdaq Composite recording its largest gain since 2001. Cryptocurrencies subsequently rose, with Bitcoin returning to around 83K, Ethereum rising nearly 13%, but the Coinglass Fear and Greed Index remains at an extreme fear level of 18.
Table of Contents
ToggleTrump Suspends Punitive Tariffs for 90 Days, Stock Market Surges
Five days after U.S. President Trump's trade war threw global stock and bond markets into chaos, he finally began to back down, pulling financial assets back from the brink.
After opening lower, the S&P 500 index surged nearly 10%, and the Nasdaq Composite recorded its largest gain since 2001. U.S. Treasury yields fell compared to yesterday's Asian session, and the U.S. dollar rose against safe-haven currencies like the Japanese yen and Swiss franc.
The sudden reversal in asset prices, which has occurred repeatedly over the past four trading days from Tokyo to London, especially in New York, was again triggered by Trump himself. He first posted on social media, stating that "now is a good time to buy", and then announced a 90-day suspension of punitive tariffs on dozens of countries. Despite escalating conflict with China, where China announced tariffs up to 84% on all U.S. imports, and Trump continued to raise tariffs on China to 125%, it has become a game of chicken.
Top 10 Cryptocurrencies Rise, Market Still in Extreme Fear
Cryptocurrencies subsequently rose, with the top 10 cryptocurrencies by market cap showing good gains.
Bitcoin rose from 74K yesterday morning to around 83K before the article's deadline, with a 24-hour increase of over 8%.
Ethereum rebounded from its low of $1,385, reporting at $1,661 before the deadline, with a 24-hour increase of nearly 13%.
However, the Coinglass Fear and Greed Index remains at an extreme fear level of 18, indicating that the market still has strong uncertainty about the recent trade war. This sudden pull has severely hurt leveraged investors, with network-wide liquidations reaching $590 million in 24 hours, including over $374 million in short positions and $214 million in long positions. It is recommended that investors carefully manage risks in such a volatile market.
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
