Cryptocurrencies briefly rallied alongside stocks on news that U.S. President Donald Trump is walking back many of his tariff policies.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, rose as much as 7% in afternoon trading on April 9.
Other digital coins and tokens also surged on news of the tariff relief, with Ethereum (ETH) gaining 13%, Solana (SOL) rising 15%, and Dogecoin (DOGE) increasing 12%.
The rally came after President Trump announced that he is pausing for 90 days U.S. import duties on most countries and moving to adopt a universal duty of 10% for most foreign products.
Stocks associated with crypto such as MicroStrategy (MSTR), Robinhood Markets (HOOD), and Coinbase Global (COIN) also skyrocketed, with each up more than 20% on April 9.
Unfortunately, the rally has been short lived and crypto has again turned lower along with the stock market.
All the major cryptocurrencies are down in early trading on April 10, with Bitcoin’s price hovering right around $81,000 U.S. Bitcoin has traded as low as $77,000 U.S. in recent days.
Crypto prices have fallen sharply over the past few weeks, with Bitcoin dropping 25% from its January all-time high.
Digital assets are largely trading in-tandem with equities, both of which have fallen sharply lower on news of President Trump’s tariff policies.
And the volatility may not be over as President Trump also announced that he is raising tariffs on Chinese imports to 125%, the highest level yet.
Chinese government officials in Beijing have vowed to fight back against U.S. trade protectionism, raising their import duties on American products to 84%.
