Bitcoin Price Tops $84.5K as XRP, ETH, ADA Gain 6% Amid Tariff Exemptions

Bitcoin’s price surged over 1.5% to $84,900, aiming to break a three-month downtrend influenced by new U.S. tariff exemptions for tech products. Additionally, major altcoins like ETH, XRP, and ADA gained around 6%. This positive momentum hints at increased risk-taking in the crypto market as optimism grows ahead of trading on Wall Street Monday.

In a remarkable twist, Bitcoin’s price climbed over 1.5% to reach $84,900 on Saturday, aiming to shake off a lingering three-month downtrend. This surge coincided with new guidance from the Trump administration regarding reciprocal tariffs, providing crucial exemptions for tech products, including smartphones and computers. Interestingly, this move by the U.S. Customs and Border Protection signals a potential easing in the ongoing U.S.-China trade tensions.

The context here is important. President Donald Trump’s hefty 125% tariff on Chinese imports particularly impacts the tech sector. “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,” noted The Kobeissi Letter on X. The ongoing tug-of-war in trade relations shows no sign of slowing down, with tariffs currently exceeding 100% on various imports from both countries.

On the broader crypto landscape, Bitcoin’s rise is not happening in isolation. Altcoins such as Ethereum (ETH), XRP, and Cardano (ADA) also saw impressive gains, each jumping by around 6%. This trend points to an appetite for risk within the cryptocurrency world as investors navigate the evolving market.

Interestingly enough, the latest movements have led to a stable market capitalization for top stablecoins, like USDT and USDC, which remain steady above the $200 billion mark. Analysts speculate that this robust momentum in cryptocurrency trading over the weekend could spark a bullish trend on Wall Street come Monday.

As Bitcoin positions itself above a significant descending trendline, indicating a possible trendline breakout, chart-watchers anticipate increased buying activity as more investors gear up for what might be a promising rebound. The wave of optimism isn’t just about Bitcoin; the general sentiment around the crypto market suggests a readiness to dive into riskier assets.

In the backdrop of all this, analysts from various sectors are weighing in on the implications of current financial dynamics. The ongoing disinflationary environment in the U.S. could potentially provide the Federal Reserve with an opening to reduce interest rates, contrasting the prevalent inflation fears. So, while trade wars escalate, the implications for the crypto market and investor sentiment present a narrative of cautious optimism.

In summary, Bitcoin’s price rally to over $84,900 reflects a broader resurgence in cryptocurrency markets, driven in part by new tariff exemptions for tech imports associated with the U.S.-China trade war. Altcoins like ETH, XRP, and ADA also saw healthy gains, suggesting a shift toward risk-taking among investors. All eyes will be on Wall Street Monday as these trends unfold, with some analysts turning their attention to the potential for interest rate cuts amid shifting economic dynamics.

Original Source: www.coindesk.com