Yesterday was one for the history books — the U.S. stock market experienced a massive rally, with the Dow Jones closing up nearly 3,000 points (+8%), and the NASDAQ soaring 12%. It marked one of the biggest single-day gains ever, showcasing the immense pent-up buying pressure from investors eager to reenter the market.
The rally wasn’t limited to traditional markets — Bitcoin and the broader crypto market also saw major gains. Earlier in the day, Bitcoin surged to $83,000, and as of writing, it sits at around $82,400, significantly higher than where it opened. Almost every major altcoin joined the rally, bringing some much-needed optimism back into the space.
What Fueled the Surge?
The catalyst behind this explosive move was President Trump’s announcement that he is pausing all reciprocal tariffs on most countries — except China. To clarify, a baseline 10% tariff remains, but additional higher tariffs (like 34% and 43%) have been removed for many countries. However, Canada and Mexico still maintain their 25% tariffs without any new additions.
China, on the other hand, faces an increased tariff of 125%, meaning the trade war with China is far from over. Meanwhile, tensions with the EU and other nations still linger, as retaliation threats are ongoing.
Despite the uncertainty, markets celebrated the tariff pause, with Asia responding positively — Japan’s market jumped over 8% overnight.
What’s the Real Story Behind the Pause?
While official sources claim this move was “part of the plan,” there’s growing speculation that the real reason could be tied to the 10-year Treasury yield. Analysts believe that the rapid climb in Treasury yields — potentially due to large sell-offs by China and Japan, two major holders of U.S. debt — pressured the U.S. government to act.
Higher yields make issuing new bonds more expensive and can harm the U.S.’s financial standing. Pausing tariffs may have been an emergency maneuver to stabilize the market and calm fears — rather than a pre-planned strategy.
Bitcoin, Crypto, and What’s Ahead
Market sentiment turned sharply positive, and hopes for Bitcoin reaching $100K are back on the table. Some even suggest that if bullish catalysts continue, Bitcoin could be back at $90K tomorrow and $100K by the weekend. While that’s optimistic, today’s sharp rally reminds us how quickly sentiment can shift in crypto.
However, it’s important to stay cautious — this is a 90-day tariff pause, not a permanent solution. Plus, China, the EU, Canada, and Mexico could still retaliate, which could dampen the rally.
Beyond tariffs, there’s more good news for crypto:
- Paul Atkins has been confirmed as the new SEC Chair, signaling a potential pro-crypto regulatory environment.
- Options trading for spot Ethereum ETFs has been approved, possibly giving Ethereum a boost.
- There are rumors of spot ETFs for Doge, XRP, Solana, Hedera, Cardano, and more.
- Fundamentals across the board remain strong — whale accumulation, exchange supply reduction, and record addresses on networks like XRP and Solana indicate steady growth.
Today’s surge reminds investors why it’s crucial to stay in the game during tough times.
A Reminder on Dollar-Cost Averaging (DCA)
For long-term crypto holders, days like today show the power of Dollar-Cost Averaging (DCA). My personal DCA portfolio, despite major market corrections, is still up 45% overall — climbing 10-11% just in the past 24 hours!
While the portfolio is down from an all-time high of $44,000 to around $27,000, it’s far above the low of $3,100. That’s why DCA works — smoothing out volatility over time.
Currently, my portfolio is close to 60% Bitcoin, followed by Solana, Cardano (ADA), Sui (SUI), BNB, XRP, and Avalanche (AVAX). I’ll be focusing my next DCA on Bitcoin, XRP, and Sui to maintain balance.
Final Thoughts
Today was a powerful reminder that markets can recover faster than expected. While risks remain and the tariff pause may only be temporary, optimism has returned — at least for now.
In crypto, the fundamentals remain strong, and with new regulatory clarity and potential ETFs on the horizon, the future looks brighter than ever. Stay patient, stay consistent, and remember: it’s not about timing the market; it’s about time in the market.
Happy stacking!