Following the U.S. President Donald Trump’s 90 days tariff pause announcement, the U.S. stock market has soared by $3.5 trillion in a single day, an amount equivalent to the entire crypto market cap at its peak in late 2024.
The news also sends shockwaves through global markets as it includes a steep 125% tariff hike on Chinese goods but the crypto community is buzzing with optimism as Bitcoin price spikes 6.50% and breaks above $82,000 while the overall crypto market cap sees a notable 7% increase.
The S&P 500 index – a key barometer of the U.S. economy – surged 5.8%, one of the largest single-day gains since 1923 with it climbing from 4,948.43 to 5,451.96, according to Marketwatch data.
A heatmap of S&P 500 companies shared by Watcher.Guru on X reveals widespread gains across various sectors with tech giants NVIDIA, Apple, Microsoft and Google surging 13.56%, 11.50%, 8.23% and 7.11% respectively.
For the crypto market, the $3.5 trillion stock market jump is a bittersweet benchmark. At its all-time high in December 2024, the total crypto market cap briefly touched $3.7 trillion, driven by Bitcoin’s meteoric rally to the historic $100,000 mark prior to Trump’s inauguration.
However, Trump’s earlier tariff threats had already rattled the crypto space with Bitcoin plunging below $75,000 earlier this week. The rapid drop underscored crypto’s vulnerability to broader market sentiment despite Trump’s vocal support for the industry.
As global markets continue to digest Trump’s trade war escalation with China, the crypto sector is left wondering if it can catch the same tailwind that propelled U.S. stocks to such heights. For now, the “crypto market cap” jump in stocks serves as both a milestone and a reminder of the volatile interplay between traditional and decentralized finance.
Also Read: Investors Pull $326 Million from Bitcoin ETFs – Here’s Why
