Bitcoin, the most influential cryptocurrency in the market, has experienced a remarkable surge of approximately 5%, climbing to an impressive intraday high of $81,798 on the Bitstamp exchange.

This surge follows the U.S. government's announcement of a 90-day pause on tariffs for countries that chose not to retaliate. However, it’s important to note that tariffs on China have ballooned to a staggering 125%.

Treasury Secretary Scott Bessent has declared that countries avoiding retaliation will indeed be "rewarded," dismissing any connection between the tariff pause and recent market fluctuations.

The ripple effects of these developments are evident, as the S&P 500 has surged by as much as 6%, and the tech-heavy Nasdaq-100 has skyrocketed by 8%, significantly outpacing Bitcoin’s climb.

In the corporate realm, shares of MicroStrategy (MSTR), the largest corporate Bitcoin holder, soared nearly 20%. Notable trading platforms Robinhood (HOOD) and Coinbase (COIN) recorded gains of 17% and 13%, respectively.

Is a Broader Relief Rally on the Horizon?

Weiss Crypto, a prominent cryptocurrency analytics firm, suggests that despite the ongoing turmoil, a significant relief rally might be on the way. They note, "Liquidity has been increasing throughout 2025, indicating that a rally is likely already in the works, just waiting for the right trigger."

Market analysts point to potential cuts in interest rates by the Federal Reserve as a critical bullish factor that could energize the market even further.

However, hopes for a rate cut in the upcoming Federal Reserve meeting have been dampened following recent developments.