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Bitcoin spiked on Wednesday afternoon after President Donald Trump said on social media that he authorized a 90-day pause on tariffs.
The price of the flagship cryptocurrency was last higher by more than 7% at $82,350.37, according to Coin Metrics.
Earlier, it fell as low as $74,567.02 as the benchmark 10-year U.S. Treasury yield briefly climbed over 4.51% (it has since eased off that high).
Bitcoin proxy stock MicroStrategy, recently rebranded to Strategy, rocketed 25%. Robinhood climbed 23% and crypto exchange Coinbase jumped 20%.
Bitcoin (BTC)
Bitcoin is down about 25% from its January all-time high.
Bitcoin’s surge coincided with the biggest rally in five years for the blue-chip Dow Jones Industrial Average stock index, after Trump said in a Truth Social post that he has “authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” He also said he is raising the tariff on China higher again to 125%.
Since last Thursday, bitcoin has been taking its cues from the equities market, with traders looking for any signs of clarity around the Trump administration’s tariff plans. Though it has generally shown less intraday volatility than equities, the cryptocurrency is down about the same amount as the major stock averages, roughly 5%, since then.
Although bitcoin will likely continue to move in tandem with tech stocks day-to-day, “long-term oriented investors should position portfolios for sustained dollar weakness and generally above-target inflation — consistent with how periods of severe U.S. trade frictions have been resolved in the past,” Zach Pandl, head of research at Grayscale Investments, told CNBC.