Bitcoin surged past $82,900, reaching a new all-time high, while Ethereum jumped 15%, boosted by optimistic sentiment surrounding the temporary tariff reprieve. This surge coincides with a significant rebound in global markets. The S&P 500 witnessed its best day since 2008, gaining 9.52% as investors embraced hope from the prospect of de-escalated trade tensions.
Bullish social sentiment amplified Bitcoin’s rally, with a 3.5-to-1 ratio of bullish to bearish mentions on social media platforms. This reflected retail investors’ enthusiasm fueled by FOMO (Fear Of Missing Out) and momentum. XRP also experienced notable gains, surpassing $2 for the first time in weeks.
Furthermore, the crypto market’s total value cap climbed 8.13% to reach $2.61 trillion, a strong rebound from earlier losses related to trade war fears.
The stock markets reacted with enthusiasm as well. The S&P 500 soared by 9.52%, reaching levels last seen in 2008, while the Nasdaq experienced an impressive 12.16% jump, its second-largest single-day rally ever. Tech companies like Nvidia, Apple, Microsoft, Tesla, Amazon, and Meta also saw gains exceeding 10%. The positive sentiment was attributed to the tariff reprieve.
Social Sentiment Fuels Crypto Momentum:
Santiment data shows a dramatic shift in social media sentiment towards Bitcoin. There is now a 3.5-to-1 ratio of bullish comments for every bearish comment. This has amplified investor confidence, driving further buying pressure. Ethereum follows with a 2.3-to-1 ratio of positive sentiment.
In addition to the cryptocurrency market performance, the stock market also reacted favorably to the tariff reprieve. The S&P 500’s historic rally and the Nasdaq’s surge are indicative of this shift in risk appetite.
However, analysts remain cautious. While short-term gains might continue, unresolved trade tensions with China pose a long-term challenge that could impact market dynamics.
Source: Santiment