Bitcoin Rebounds on Trump Tariff Relief, Crypto Markets Rally Amid Trade Tensions

Bitcoin Rebounds on Trump Tariff Relief, Crypto Markets Rally Amid Trade Tensions

Bitcoin rebounded sharply on Thursday, climbing 4% to $80,780, as U.S. President Donald Trump delayed plans to impose steep reciprocal tariffs, boosting risk appetite. The rebound came after Bitcoin hit a five-month low earlier in April, reflecting broader market optimism following Trump's 90-day tariff extension. This move gives global economies more time to negotiate trade deals, potentially easing supply chain and economic pressures.

However, gains in Bitcoin and broader crypto markets were tempered by escalating U.S.-China trade tensions. Trump did not exempt China from tariffs, hiking them to 120%, while China retaliated with 84% tariffs on U.S. goods. This exchange signaled a rapidly intensifying trade war, which could disrupt global supply chains and rattle risk-driven markets.

Cardano Founder Predicts $250K Bitcoin Price by 2026

Charles Hoskinson, founder of Cardano, expressed optimism about Bitcoin's future, predicting it could reach $250,000 by the end of 2025 or in 2026. In a CNBC interview, Hoskinson cited improving market conditions, legislative clarity, and forthcoming U.S. crypto regulation as key drivers. He highlighted two major bills—the GENIUS Act and the STABLE Act—as potential catalysts for corporate adoption of stablecoins, particularly among tech giants.

Hoskinson acknowledged near-term uncertainty but suggested sentiment could shift by late summer. He forecasted a "huge wave of speculative interest" arriving in August or September, potentially sustaining momentum for another six to 12 months. Stronger fundamentals, including a 13% year-over-year increase in global crypto adoption to 659 million users, further support his bullish outlook.

Broader Crypto Markets Rally, Altcoins Soar

Crypto markets tracked broader risk-driven assets, with significant gains across altcoins. Dogecoin surged over 6% after fund manager 21Shares announced plans to list a Dogecoin ETF, potentially attracting institutional investment. Ether jumped 6% to $1,570.88, while XRP rose 8.3% to $1.98. Solana, Cardano, and Polygon also saw gains between 5% and 10%, with $TRUMP adding 4.2%.

The rally reflects a broader recovery in crypto markets, which had faced heavy losses in recent weeks. However, uncertainty over U.S.-China trade relations and Trump's tariff policies continues to weigh on investor sentiment. Despite these headwinds, Hoskinson remains confident that the impact of trade tensions will be short-lived, with negotiations ultimately prevailing.