Bitcoin and Major Cryptos Surge Amid Trade Tariff Exemptions and Risk-On Sentiment
Major cryptocurrencies, including Ethereum (ETH), Ripple (XRP), and Cardano (ADA), experienced notable gains over the weekend, signaling a shift toward increased risk appetite in the market.
Bitcoin (BTC) climbed more than 1.5% to $84,900 on Saturday, attempting to break its three-month downtrend after the Trump administration unveiled new tariff exemptions. These exemptions, which apply to key tech products like smartphones, computers, chips, and other electronics, were outlined by U.S. Customs and Border Protection.
The exclusions relate to President Donald Trump’s 125% tariff on Chinese imports, as well as the baseline 10% global tariff. “The U.S. imports over $60 billion of smartphones annually. These exemptions cover critical imports, signaling a U.S. concession in the trade war—primarily due to pressures from the bond market,” noted The Kobeissi Letter on X.
Despite escalating trade tensions between the U.S. and China, which have led to tariffs exceeding 100% on each other’s imports, some sectors of the financial markets are pricing in the possibility of disinflation in the U.S. This contradicts the prevailing inflation concerns and hints that the Federal Reserve might soon have room to cut interest rates.
Bitcoin’s chart now indicates an attempt to establish support above the descending trendline, following the sharp sell-off from its record highs above $109K. A breakout from this trendline could attract more chart-driven buyers, potentially driving the price higher.
In parallel, leading alternative cryptocurrencies like ETH, XRP, and ADA surged by 6%, reflecting a broader trend of risk-taking across the crypto space. The combined market capitalization of the top two stablecoins, USDT and USDC, remained above $200 billion, nearing their all-time highs.
This optimistic movement in the crypto market, which started trading over the weekend, signals potential for positive price action on Wall Street when the markets open on Monday.
