Bitcoin (BTC) experienced a significant surge, climbing above $84,500 on Saturday, as the cryptocurrency market reacted positively to the Trump administration’s decision to exempt key technology products from reciprocal tariffs. This move has fueled speculation that Bitcoin may be poised to break its three-month downtrend.
The US Customs and Border Protection’s announcement of tariff exemptions for smartphones, computers, chips, and other electronics, which are subject to President Trump’s 125% China tariff and 10% global levy, has been interpreted as a potential de-escalation in the ongoing trade tensions between the US and China.
“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,” commented The Kobeissi Letter via social media platform X.
This development comes amid heightened trade tensions between the two economic giants, with both countries imposing tariffs exceeding 100% on various imports. However, the market’s reaction suggests that investors are factoring in potential disinflation in the US, which could pave the way for the Federal Reserve to consider interest rate cuts.
Technically, Bitcoin’s price action indicates a potential breakthrough of a descending trendline that has characterized its recent decline from record highs above $109,000. This trendline breakout could attract further buying interest from chart-driven traders.
Furthermore, major alternative cryptocurrencies (altcoins) such as Ethereum (ETH), XRP, and Cardano (ADA) have also seen substantial gains, with each surging by approximately 6%. This broad-based rally suggests a growing appetite for risk within the crypto market. The combined market capitalization of stablecoins USDT and USDC remained robust, hovering just below their all-time high of $200 billion.
