The unexpected tariff freeze fueled renewed momentum in memecoins, reversing last week’s broader crypto selloff
Memecoins staged a sharp recovery Wednesday after former President Donald Trump announced a temporary suspension of his aggressive tariff policy, triggering renewed demand for high-risk digital assets.
The move, announced on Trump’s Truth Social account, marked a significant reversal from his previous stance and was quickly priced in by traders across both equities and crypto.
The rebound saw speculative tokens post double-digit intraday gains. According to CoinGecko data, Fartcoin jumped 43.5% to a 10-week high, while Popcat rose 28.6% and Mog Coin gained 24.1%.
The total memecoin market cap surged 12.8% in the past 24 hours, according to CryptoSlate, reflecting a broader shift in sentiment as risk appetite returned.
Bitcoin and Ethereum also rose in tandem with the memecoin surge. Bitcoin reclaimed the $83,000 level, maintaining a 62.6% dominance in total market share, while Ethereum edged back above $1,600.
Market watchers noted that capital has not fully rotated into altcoins, but sentiment indicators like the Crypto Fear and Greed Index rose ten points to 25, suggesting reduced anxiety.
Tariff pause softens investors’ anxiety after market shock
The rally came just days after the crypto market faced one of its sharpest drawdowns this year.
Trump’s initial announcement of a universal 10% tariff on all imports had triggered a wave of liquidations, wiping $1.3 trillion from crypto valuations and dragging Bitcoin below $75,000.
The selloff also pushed altcoins like Dogecoin and Shiba Inu down more than 15% in a 24-hour window, with memecoins among the hardest hit.
On April 9, Trump reversed course, announcing a 90-day delay in implementing the new measures. He also reduced the reciprocal tariff to 10%, although the rate on Chinese goods was still raised to 125%, intensifying tensions between Washington and Beijing.
The partial rollback marked a shift in tone from the administration, with trade talks reportedly ongoing.
China’s Commerce Minister Wang Wentao said the government remains open to negotiation, a statement that helped ease investor anxiety across risk markets.
