Bitcoin’s price pushed past $81,000 on Wednesday, gaining over 7% in one day, after investor sentiment recovered from recent international news and regulation updates. It was the strongest single-day increase since early March, placing confidence back in the cryptocurrency market.

The increase in the price came after the U.S. said it would postpone tariffs on imports from China and Europe, and there were signs that crypto-friendly legislation is making progress in Washington. With global trade tensions easing, Bitcoin—often viewed as a secure option during unstable times—climbed alongside other high-risk investments.

Tariff suspension reignites crypto momentum

All the cryptocurrencies, including Bitcoin, rallied on Wednesday after President Donald Trump announced a temporary tariff 90-days pause on all countries except China which now faces an increased tariff rate of 125%. The White House called this a “cooling-off period” designed to quiet markets and aid trade negotiations. The report boosted investor optimism about cryptocurrencies, with Bitcoin driving the way upward. President Trump said in a Truth Social post that, 

“based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”

The news had an immediate favorable effect on world markets. According to CNBC and Coin Metrics, Bitcoin (BTC) soared more than 7% to $82,305.55 after plunging to $74,567.02 when the 10-year US Treasury yield temporarily surpassed 4.51%. Other popular cryptocurrencies also saw a significant rise in their prices as well, with Ethereum, Dogecoin, and XRP all going up by more than 12%, and Solana rising by more than 14%. Crypto-related equities also climbed, with MicroStrategy up 23%, Robinhood up 24%, and Coinbase up almost 17%.

Moreover the crypto boom was also accompanied by a strong recovery in the stock market.  The Nasdaq went up over 7% on the same day, while the S&P 500 went up by 5%, showing how sharply markets responded to recent policy pronouncements. FXStreet analysts say that Bitcoin’s price direction currently suggests a possible bullish breakout, with the next resistance point at $85,000 and long-term objectives reaching near $100,000.

Temporary Relief or Start of a Bull Run?

At the time of writing, Bitcoin is trading at $82,150. Coinbase data shows that the value of Bitcoin has increased by 0.03% over the past hour and 6.70% over the past 24 hours to a record high of $7,085,471.03. The 24-hour trading volume has reached $76.82 billion. Even with the increase, a number of analysts advise caution. The suspension of tariffs for 90 days could see more uncertainty if higher geopolitical issues, especially with China, are awakened.

In addition, authorities and market players need to follow through to sustain the positive momentum. But with technical indicators signaling bullish and overall market risk appetite improving, Bitcoin’s breakout above $81,000 may mark the beginning of a longer-term trend.