Following Donald Trump’s decision to exempt technology products from tariffs imposed on China and other countries, the digital currency market, led by Bitcoin (BTC), has experienced a significant surge. This exemption, covering mobile phones, computers, and chips, had a positive impact on the markets, reducing tariff pressures considerably. Market data shows that the price of Bitcoin crossed the $85,000 mark after this news, with many altcoins also experiencing remarkable growth. This exemption, especially beneficial for the stock market, particularly companies like Apple, coupled with Bitcoin’s strong correlation with the stock market, makes the rise in the crypto market seem logical. On the other hand, this decision could be a signal of a possible end to the trade war between the United States and China. While China recently imposed a 125% tariff on imports from the US, Trump had earlier announced a 145% tariff on Chinese goods. However, Trump has recently expressed his willingness to negotiate with China, which could pave the way for the next bullish wave in the cryptocurrency market by improving investor risk appetite. In this regard, renowned macroeconomics trader Raoul Pal has stated that Trump’s tariffs could be a negotiating tool with China, not just a punitive measure. Kevin Capital, a well-known analyst, also suggests that the market correction phase is progressing as expected, but Bitcoin’s price surpassing $89,000 for confirmation of the continued upward trend is crucial. According to him, lower-than-expected inflation data releases and the possibility of changes in monetary policies by the Federal Reserve can be positive factors for the market. On the other hand, Rekt Capital warns that Bitcoin has not yet managed to register a weekly close above $86,000; a level that if breached, could trigger a similar surge as in 2021. You can view the live and real-time prices of all tokens and cryptocurrencies on the momentary price page of digital currencies.
