Bitcoin Surpasses $84.5K, Aims to End Downtrend as Trump Exempts Key Tech from Tariffs

Key Points:

• Bitcoin rose more than 1.5% to $84,900, aiming to break a three-month downtrend following new U.S. tariff exemptions.

• U.S. Customs and Border Protection removed major tech companies from Trump’s tariffs, hinting at a possible concession in the ongoing trade conflict.

• Leading cryptocurrencies like ETH, XRP, and ADA saw strong gains, signaling an uptick in market risk appetite.

Bitcoin (BTC) climbed more than 1.5% to $84,900 on Saturday, aiming to end a three-month downtrend after the Trump administration released new guidelines on reciprocal tariffs, including exemptions for items like smartphones, computers, chips, and other electronics.

The exclusions, announced by U.S. Customs and Border Protection, remove these products from President Donald Trump’s 125% tariff on China and his standard 10% global levy.

"The U.S. imports over $60 BILLION worth of smartphones every year. These exemptions target some of the most essential imports, marking another sign of the U.S. giving ground in the trade war. Ultimately, the bond market is forcing Trump to yield," The Kobeissi Letter remarked on X.

Trade tensions between the U.S. and China escalated this week, with both nations imposing tariffs surpassing 100% on each other’s imports. Yet, parts of the financial market are pricing in disinflation in the U.S., challenging the prevailing inflation concerns and suggesting the Fed may soon have the flexibility to reduce interest rates.

BTC's daily chart. (TradingView)

The chart indicates that BTC is attempting to secure a position above the descending trendline that marks the sharp sell-off from its record highs above $109K. A breakout of this trendline could attract more chart-focused buyers into the market.

Meanwhile, leading altcoins like ETH, XRP, and ADA saw a 6% increase, reflecting a rising appetite for risk in the broader crypto market. The combined market capitalization of the top two stablecoins, USDT and USDC, remained stable above $200 billion, close to record highs.

This strong momentum in the crypto market, which remained active over the weekend, suggests the potential for price gains on Wall Street by Monday.