The crypto market has recently experienced a rebound led by Bitcoin after Donald Trump announced the exemption of tech products from tariffs imposed on China and other countries. This move has been seen as a positive development amid the ongoing trade war between the US and China. The surge in the crypto market was triggered by Trump’s decision to exempt phones, computers, and chips from the new tariffs, leading to a surge in the Bitcoin price to over $85,000 and other altcoins also recording significant gains. This move has been perceived as bullish for the market as it reduces the severity of tariffs previously imposed by Trump on almost all countries.
The exemption of tech products from tariffs represents a significant win for the stock market, with companies like Apple expected to be the biggest beneficiaries. This exemption has also contributed to the rebound of the crypto market, given Bitcoin’s correlation with stocks. The move by Trump could potentially mark the beginning of the end of the ongoing trade war between the US and China, with China announcing a 125% tariff on US imports in response to the US decision to impose 145% tariffs on Chinese goods. Trump’s statement about looking forward to making a deal with China is seen as a positive development that could lead to another massive rally for Bitcoin and altcoins once an agreement is reached between the two countries.
Cryptocurrency analysts have suggested that the correctional phase in the crypto market could soon be over, with the possibility of Bitcoin clearing the $89,000 level being a key indicator. The Federal Reserve’s recent plan to provide liquidity if necessary and the lower-than-expected inflation data from the CPI and PPI reports could motivate the Fed to ease monetary policies. However, analysts like Rekt Capital have warned that Bitcoin still needs to weekly close above $86,000 to potentially set BTC up for a breakout similar to that of mid-2021. While the macro side seems to be progressing well, there is still work to be done for the market to start looking really good.
In conclusion, the recent exemption of tech products from tariffs by Donald Trump has had a positive impact on the crypto market, leading to a rebound in Bitcoin and altcoins. This move, combined with the potential easing of monetary policies by the Federal Reserve, could pave the way for further growth in the crypto market. However, market participants are advised to monitor key levels such as $86,000 and $89,000 for Bitcoin to determine the next phase of market movement. As the US-China trade war continues to unfold, the outcome of negotiations between the two countries could also have a significant impact on the future direction of the crypto market.
