Bitcoin (BTC) rose over 1.5% to $84,900 on Saturday, signaling a potential end to a three-month downtrend. This uptick coincides with the Trump administration’s recent issuance of new guidance regarding reciprocal tariffs. Among the key announcements were several exemptions for critical products, including smartphones, computers, chips, and other electronics.
The U.S. Customs and Border Protection has exempted these products from President Donald Trump’s 125% tariffs on China and the baseline 10% global levy. According to financial analysts at The Kobeissi Letter, “The US imports over $60 BILLION of smartphones per year. These exemptions cover some of the most crucial imports in another sign of the U.S. conceding in the trade war. After all, the bond market is forcing Trump to concede.”
Despite intensifying trade tensions between the U.S. and China this week, where both nations imposed import tariffs exceeding 100% on each other, certain sectors of the financial market have reacted differently. Some experts believe that the market is pricing in disinflation in the U.S. economy, presenting a counter-narrative against prevalent inflation fears. This scenario may provide the Federal Reserve with the necessary leeway to consider interest rate cuts in the near future.
Technical analysis shows that BTC is aiming to establish itself above a descending trendline, which has defined its considerable sell-off from record highs exceeding $109K. A successful trendline breakout could attract more chart-driven buyers to the market.
Moreover, alternative cryptocurrencies such as ETH, XRP, and ADA experienced a 6% surge in value, indicating a broader trend of heightened risk appetite among investors in the crypto market. The combined market cap of the top two stablecoins, USDT and USDC, remains stable above $200 billion, not far from record highs.
This positive momentum in the cryptocurrency market as it opens for trading over the weekend hints at the possibility of price gains cascading into Wall Street come Monday. Investors will be keenly observing the unfolding developments as Bitcoin and the crypto ecosystem navigate through these uncertain waters.
