Bitcoin (BTC) Jumps Above $10K, Ethereum (ETH) Also Surges

Other cryptos like Ethereum (currently at $1,605), BNB ($592.64) and XRP ($2.13) have also jumped after hitting their five-month lows.

Cryptocurrencies continued their rally on Sunday, with Bitcoin rising above $51,000 following a recent decline to a five-month low.

According to analysts, the rally in Bitcoin, Ethereum, and Dogecoin can be attributed to several positive events. These include former President Donald Trump’s 90-day tariff break and the US SEC’s confirming Paul Atkins and approving Ethereum ETFs options trading, which have provided critical credibility to the cryptocurrency ecosystem.

As several macroeconomic headwinds like inflation, high interest rates, and the Russia-Ukraine war have pressured global markets this year, Trump’s administration imposed 125% tariffs on a range of Chinese goods, to which China retaliated with duties of up to 84%.

These tariffs, imposed in 2018 during the Trump administration and later increased by the Biden administration, were seen by many investors as a key factor in the broader market downturn and a major point of contention in US-China relations.

However, Trump announced in May that he would be pausing the tariffs for 90 days to allow for negotiations, which several economists and investors saw as a positive turn of events.

"Trump’s 90‑day tariff deferment and reduction to 10% have alleviated macroeconomic uncertainties and injected fresh optimism into the market," said Himanshu Maradiya, founder and chairman of CIFDAQ Group.

"With less volatile geopolitical and trade environment in sight, investors anticipate stronger capital inflows into the crypto market."

According to Maradiya, macroeconomic risk appetite is returning as the US Federal Reserve nears the terminal interest rate and risk-on sentiment is increasing with optimism over the 90-day tariff pause.

"This shift in sentiment is increasing demand for high-growth assets like cryptocurrencies, which is bolstering demand for digital assets."

But not all trading partners benefited equally: China was excluded.

Before the pause, US tariffs on Chinese imports had climbed to 125%, and China retaliated with duties up to 84%, deepening the trade war and disrupting global supply chains. Many investors now view this regulatory pause as a positive sign for a broader rebound in global growth prospects.

Meanwhile, the latest major cryptocurrency to be listed recently, Pi Network Coin, also saw a similar surged.

It surged to $0.77 on Sunday, after hitting below $0.5 last week. In the past 24 hours, the crypto jumped 7.9 per cent on Sunday.

The cryptocurrency, which is developed by Stanford graduates, allows users to mine the coin on their mobile phones. It stands in contrast to Bitcoin, which requires specialized and expensive mining equipment.

To earn Pi Coins, users need to open the Pi Network app once daily and perform simple tasks, such as engaging with other users in the built-in social network or completing short quizzes on cryptocurrency basics.

The project, launched in 2019, has since amassed a following of over 70 million users.