Crypto Market Rebounds as Tariff Clarity Eases Investor Fears

The cryptocurrency market edged higher on Friday as investor sentiment improved following clarity on President Donald Trump’s tariff stance.

Bitcoin (BTC) rose nearly 2% in the past 24 hours, reaching $97,300, while Ethereum (ETH) surged 4% to $2,700. XRP surged 12% after the SEC acknowledged Grayscale’s ETF application, and Solana (SOL) jumped 5.6% to $201, according to CoinGecko.

The cryptocurrency market recorded a nearly 2% increase over the past day, bringing its total market capitalization to $3.38 trillion. Liquidations in the same period totaled $147 million, with BTC accounting for $27 million. ETH followed with $18 million, while altcoins contributed $15 million in liquidations, according to CoinGlass.

The crypto market’s rebound comes as traders react to Trump’s tariff policy update, which provided more clarity and a potential timeline for implementation.

“Participants were largely in ‘wait and see’ mode, with focus yet again falling on the reciprocal tariffs that President Trump has long-promised to announce,” said Michael Brown, a senior research strategist at Pepperstone. “That announcement, after almost a week of delay, finally came yesterday, with Trump signing a Presidential memorandum, importantly, not an executive order, to bring in said measures.”

Brown noted that the measures won’t commence until the start of April, adding that the extra time “also gives plenty of time for negotiations with countries around the world, to prevent said tariffs being implemented at all,” which helped lift investor sentiment.

Trump’s Tariffs

On Thursday, President Trump outlined plans for reciprocal tariffs targeting countries with higher tariffs on US imports, including the European Union, India, and Japan. The proposed measures aim to balance trade disparities. The European Commission has criticized the move, labeling it counterproductive and a hindrance to free and fair trade.

This comes nearly two weeks after Trump announced tariffs on China, Canada, and Mexico, raising concerns about prolonged inflation. Specifically, he imposed a 10% tariff on Chinese imports.

In response, China hit back with a 15% tariff on U.S. coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles.