Bitcoin surges above $81K as tariff pause ignites risk rally

Major cryptocurrency prices (as of April 10, 2025)

Bitcoin (BTC): $81,984 ↑ 6.59%

Ethereum (ETH): $1,609.68 ↑ 9.90%

XRP: $2.00 ↑ 10.50%

Solana (SOL): $116.48 ↑ 10.23%

Litecoin (LTC): $74.41 ↑ 6.15%

Cardano (ADA): $0.6223 ↑ 9.58%

Dogecoin (DOGE): $0.1572 ↑ 8.57%

Tariff relief fuels global bounce across risk assets

President Donald Trump’s decision to halt new tariffs for 90 days sent a powerful signal to global markets: the trade war escalation may pause—for now. This announcement came after a brutal start to the week that saw crypto and stocks sell off on fears of a global economic slowdown triggered by sweeping U.S. import duties.

Markets interpreted the pause as a temporary reprieve, prompting strong inflows into both equities and digital assets. The news had an immediate and profound effect on sentiment, reversing risk-off flows and igniting what some traders are calling a "relief rally" across high-beta assets.

Bitcoin surged nearly 7%, retesting the $82,000 level after bouncing from lows near $74,000 earlier in the week. Ethereum saw an even stronger move, gaining nearly 10%, as investors re-entered the market with fresh momentum.

Altcoins outperform as traders rotate into risk

While Bitcoin provided leadership, the real story was in the altcoin space. XRP jumped over 10% to reclaim the psychologically important $2.00 level, while Solana extended its recovery with a 10.2% gain. Cardano, Litecoin, and even meme coins like Dogecoin joined the rally.

This broad participation reflects a classic risk-on environment: when traders expect improving conditions, they often shift capital from large caps like Bitcoin to smaller, faster-moving tokens. Historically, altcoin rallies tend to follow Bitcoin strength during early phases of sentiment reversals—a pattern we may be seeing play out now.

Market capitalization rebounds to $2.69T, wiping out recent losses

The total global crypto market cap now stands at approximately $2.69 trillion, representing a 5.55% surge in 24 hours. That’s more than $160 billion in market value regained in a single session.

This move partially erases the steep losses from earlier in the week when the market had plunged due to trade-related macro fears. Bitcoin’s dominance remains stable at 60.49%, suggesting that while altcoins surged, BTC remains the central anchor of the space.

Meme coin headlines hint at speculative fever returning

Among top performers, a low-cap meme coin named Fartcoin (FART) surged over 42%, becoming the most traded gainer of the day. While this kind of movement often draws skepticism, it’s also an indicator of shifting market psychology.

Historically, when meme tokens start moving aggressively, it often reflects an increase in speculative risk-taking—a possible sign that market participants are becoming more confident or at least more willing to gamble on outsized returns.

Sentiment lifts but caution lingers in the background

Despite the rally, not all indicators are flashing green. The Crypto Fear & Greed Index rose slightly to 25 but remains in "Fear" territory. That means many traders remain wary, still digesting the potential implications of a renewed trade conflict should negotiations fail again.

In similar historical cycles—such as the post-COVID recovery in mid-2020—sentiment often lagged behind price action. It’s possible we’re seeing something similar now: a price rally leading sentiment rather than following it.

Institutional flows show hesitation despite price action

On-chain and ETF data suggests institutions are still holding back. Spot Bitcoin ETFs posted $127 million in net outflows on Wednesday, marking five consecutive days of redemptions. BlackRock’s IBIT recorded $89.7 million in outflows alone, while only Bitwise’s BITB saw a small inflow of $6.7 million.

This divergence—price rising while funds are being pulled—may point to retail traders driving the current move, with institutions waiting for further confirmation before re-entering en masse.

Global equities surge alongside crypto in rare synchronized rally

Crypto wasn’t the only asset class to benefit from the tariff pause. The S&P 500 surged over 9.52%—its third-largest single-day percentage gain since World War II. Asian markets followed suit, and the VIX volatility index dropped sharply, showing decreased demand for downside hedges.

This correlation matters. Since late 2023, crypto and equities have moved more in sync as institutional adoption of digital assets has risen. Days like today reinforce that Bitcoin, while decentralized, is still tied closely to global risk sentiment.

A rally with legs or a temporary detour?

The big question now is sustainability. Is this a bounce with conviction, or just a reflexive rally in a volatile macro environment? The coming days will be critical. If institutional flows return and regulatory clarity improves, this breakout could have staying power.

But traders should remain alert. The same catalysts that caused this week’s meltdown—tariffs, liquidity, inflation concerns—are still active variables. For now, the bulls are in control. But the bears haven’t left the building.