Global Markets Rally 9.52% as US Pauses Tariff Hikes

The global financial landscape has witnessed a significant shift following the US government's decision to pause new tariff hikes for most countries. This move has triggered a rally in stock markets worldwide, with major indices in the US, Europe, and Asia experiencing sharp gains. The question on many investors' minds is whether Bitcoin and the broader cryptocurrency market are poised for a similar rebound.

The US government, under the leadership of President Donald Trump, recently announced a 90-day pause on its aggressive tariff policy against most countries. This decision is seen as a positive sign that the administration is open to negotiating its tariff policies with partner countries. The swift implementation of tariffs had previously drawn criticism from business leaders, including Bill Ackman, who had called for a pause in the policy's execution. Ackman welcomed the administration’s latest move, stating that the outcome of Trump’s tariff strategy was highly favorable, focusing on the results rather than the process.

Major equity markets have responded positively to the tariff pause. The US’ S&P 500 index has surged by 9.52%, while Europe’s Euro STOXX 50 has risen by 5.35%. In Asia, Japan’s Nikkei 225 has increased by 9.13%, and Australia’s ASX 200 has gained 4.54%. European indices have also shown strong rebounds, with the UK’s FTSE 100 climbing by 3.79% and Italy’s FTSE MIB surging by 5.66%. However, Germany’s DAX, France’s CAC 40, and India’s Nifty 50 remain in the bearish zone, though experts believe these markets will also show signs of recovery in the near future.

Despite the US not providing any relief to China in its decision to impose a high tariff of 125%, China’s SSE Composite index has shown bullishness, standing at 3,223.64 (+1.16%). This indicates that the global market rally is having a positive impact on various regions, including China.

In the cryptocurrency market, there has been a notable rebound in the last 24 hours, with a nearly 4.7% increase. Major cryptocurrencies have shown significant growth, with Bitcoin surging by 5.9%, Ethereum by 8.3%, XRP by 9.9%, and other altcoins also experiencing gains. This short-term optimism in the crypto sector is driven by a return in risk appetite, as global markets rally. However, the sustainability of this trend depends on broader economic clarity. While Bitcoin and altcoins have responded positively to easing macro fears, uncertainties around inflation, interest rates, and ongoing US-China tensions remain key risks.

Investors should closely monitor institutional inflows, particularly into Bitcoin ETFs, as continued inflows could support the crypto market's bullish momentum. If global equity markets maintain their current trajectory, cryptocurrencies could benefit. However, any renewed economic pressure could bring volatility back to the crypto market in the coming weeks. The global market rebound has sparked short-term optimism in the crypto sector, but the long-term outlook remains dependent on broader economic factors and geopolitical developments.