US Tariff Reversal Sparks Crypto Market Rally

Bitcoin and Ethereum prices surged following the US government’s decision on May 26, 2025, to reverse its proposed 50% trade tariffs on European imports.

Bitcoin Climbs 4.2% Post-US Tariff Reversal

Bitcoin’s rise follows the US backtracking on European tariffs, with CEO Vikram Subburaj noting that Bitcoin must surpass $112,000 to sustain momentum. “Bitcoin has bounced after the US backtracked its 50% trade tariff on Europe… it must break through $112,000 to continue its strong rally.”

Institutional players like Asia’s DDC Enterprise bolstered markets by acquiring Bitcoin as part of their treasury strategy, demonstrating how institutional buying can influence the market.

Bitcoin’s strong fundamentals are underscored by falling daily exchange inflows and increasing long-term holder activity, as noted by Sathvik Vishwanath and Edul Patel.

Tariff Policy Change Drives Market Sentiment

The rollout of the tariff policy has prompted a significant upturn in crypto prices, reflected in the 4.2% boost to Bitcoin. Trading volumes also soared, indicating higher liquidity and engagement across sectors.

Financial shifts include marked interest from institutional buyers, further solidifying crypto’s position in treasury strategies. Edul Patel, CEO of Mudrex, expressed that “The quick rebound highlights BTC’s resilience, supported by an 80% drop in daily exchange inflows… Bitcoin’s strong fundamentals and declining sell-side activity position it well for further upside.”

Market participants witness reduced sell-side pressure, signaling a positive outlook with rising holder numbers.

Past Economic Shifts Echo in Current Crypto Rally

Earlier rallies saw similar boosts in crypto values following macroeconomic shifts, echoing today’s market activity. Previous halving cycles have historically triggered substantial BTC upticks, paralleling the current reduced inflows and holder growth.

Potential outcomes suggest a robust trajectory for Bitcoin and Ethereum amidst supportive fundamentals. Expert opinions highlight resilience and forward momentum, conditioned by continued positive on-chain signals and treasury allocation upticks.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.