The meeting’s impact was immediately evident as global financial markets rebounded.
The crypto market capitalization surged by approximately 4%, reclaiming the significant $2.5 trillion mark within 24 hours, with trading volume remaining above $153 billion.
European stocks also saw broad gains, with the Stoxx 600 index rising by 1.3%.
US Treasury Secretary Bessent Intervenes During Crisis
Reports indicate that Treasury Secretary Bessent advised Trump, stating, “Markets will keep melting unless you start talking deals, not just tariffs.”
This suggests that the US needs less of a “Liberation Day” mentality and more of a “Let’s Make a Deal” approach.
This backchannel discussion occurred as markets plummeted following the US tariff imposition on over 50 countries. The meeting was seen as an opportunity to outline the next steps and engage in open dialogue.
It was reported that one of Trump’s objectives with the tariffs was to exert maximum leverage over foreign governments.
While Trump continued to emphasize a long and painful trade war, Wall Street became increasingly anxious. The contrast between his fiery rhetoric and quiet negotiations has created confusion and volatility in the markets.
This was reflected within the administration, with Bessent announcing negotiations with Japan on Monday morning, only for Trump’s trade advisor Peter Navarro to publish a Financial Times op-ed stating, “no negotiations.”
Just when it appeared diplomacy was making a comeback, Trump threatened a 104% tariff on China.
Bessent seemed to push Trump to shift the narrative from a focus on tariffs to discussing how these measures could lead to better deals and more jobs.
Wall Street Experiences a Meme Coin Moment
After a chaotic Monday that saw stocks bounce wildly like meme coins, US futures rose after the market closed, albeit fueled by fleeting optimism. News that Trump might pause tariffs for 90 days led to a brief rally in trading markets.
Dow, S&P 500, and Nasdaq-100 futures all jumped by over 1% following a turbulent trading day that saw the S&P 500 surge 7% intraday before closing flat.
The digital assets market also saw Bitcoin and major altcoins experience gains, driven by a sense of extreme fear.
Investors are yearning for stability, reminiscent of 2020. However, this time, the Federal Reserve is not stepping in with quantitative easing (QE) but rather dealing with tariffs, tweets, and a sense of impending doom.
Bitcoin rose 3% in the past 24 hours, hovering around $79K, with a slight 4% dip in its 24-hour trading volume, which now stands at $67 billion.
Ether, the largest altcoin, surged over 5% during the same period, while XRP and Solana gained 6% and 8%, respectively.
CoinGlass data shows that over 117,000 traders were liquidated in the past day, with total futures liquidations surpassing $450 million. This follows Monday’s massive $1.3 billion worth of liquidated future positions.
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