The cryptocurrency market experienced a dramatic reversal on Friday as President Donald Trump announced an immediate 90-day pause on recently imposed tariffs for several countries. Ethereum, which had been struggling below the $1,500 mark, surged more than 11% to break above $1,650, while Solana demonstrated even stronger momentum with a 13% spike that propelled it past the $120 threshold. The sudden upward movement caught many traders off guard, particularly those holding short positions in anticipation of further market declines.
itcoin">Bitcoin also participated in the rally, climbing from recent tests of the $74,000 level to reclaim territory above $82,000. According to data from CryptoQuant.com, this swift price action triggered approximately $92 million in short liquidations within just one hour. The broader liquidation figures were even more striking, with Coinglass reporting $574 million in total liquidations over the 24-hour period, of which $342 million represented short positions. The bullish momentum extended across the altcoin market, with XRP, Cardano, and Dogecoin all recording significant gains as investor sentiment dramatically improved.
The crypto market rally mirrored similar explosive movements in traditional financial markets, where the S&P 500 jumped more than 7% and the Nasdaq surged 9%. The Dow Jones Industrial Average made its most substantial single-day advance in five years, skyrocketing more than 2,400 points. However, market analysts remain cautious about the sustainability of this rally, noting that China’s exclusion from Trump’s tariff pause could limit upside potential. With China having already retaliated against Trump’s earlier 50% tariff increase by raising its own tariffs on U.S. goods to 84%, followed by Trump’s counter-escalation to 125%, tensions between the world’s two largest economies continue to cast a shadow over what might otherwise be a significant market recovery. Traders are now closely watching for China’s next move, which could determine whether this rally marks the beginning of a sustained uptrend or merely a temporary relief bounce.
