Tariff Pause Revives Bitcoin Momentum

Yet again, Trump has walked back on his tariffs that he just announced. Less than 72 hours ago, Trump posted on Truth Social that he is recommending a 50% tariff on the European Union set to begin on June 1. Halting all momentum the bulls had, Bitcoin was on the brink of setting another all time high before undergoing a near 5% pullback and altcoins drew down even more so.

This morning Trump has just announced a pause on these exact tariffs, claiming the President of the European Commission contacted him and request an extension of deadline, and Trump agreed, a pause until July 9, giving both parties time to negotiate.

Bitcoin immediately jumped 1.60% on the news, providing the bulls with some relief after negative impact of the initial tariff announcement. This sentiment was shared across risk on markets, with both S&P500 and Nasdaq futures up 0.78% and 1.01% respectively within the hour of the tariff pause. The weekend saw sentiment start to shift back to the extreme greed territory, going from 66 following Trump’s initial tariff announcement to 73 and just two points away from extreme greed.

Despite the pullback as a result of the tariffs, Bitcoin has just closed its seventh consecutive positive week, the longest streak since November 2023 which was eight straight weeks of positive price action. This slight pullback should be welcomed and expected, event after all this price action, Bitcoin is knocking on the door of $110k once again, showing the display of strength of Bitcoin.

After sliding 10% on the back of the initial EU tariff news, TAO has rebounded over 5% since Friday’s close. It’s currently holding the 21 EMA as support and attempting to reclaim the key CPR level at $440. If bulls succeed in pushing through, another test of the $490 recent high could be on the cards.

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