Bitcoin (BTC) remains relatively unchanged, trading above $84K as East Asian markets kick off the week, with Chinese stock indices enjoying modest gains. The cryptocurrency market, however, is closely monitoring developments surrounding U.S. technology tariffs, as the White House issues conflicting statements.
Over the weekend, Commerce Secretary Howard Lutnick revealed that the U.S. decision to temporarily exempt smartphones, computers, and semiconductors from tariffs was only a short-term measure. President Trump confirmed the uncertainty in a press briefing, stating that the new tariff rates would be unveiled next week but that “flexibility” would be considered.
“Bitcoin saw a strong rebound after consumer electronics were temporarily spared from the 125% tariffs on China,” BTSE COO Jeff Mei explained via Telegram. “Even after President Trump’s comments suggested that these products would eventually fall under a new tariff category rather than being fully exempt, markets held their ground, driven by speculation that business leaders may have influenced the administration to soften some of the harsher tariffs.”
Mei added that, “Shifting manufacturing away from China is not an easy or immediate process, particularly in low-margin sectors. These industries are likely to move to other parts of Asia as trade deals unfold. However, we expect that the current rally is short-term, and expect more volatility in the near future.”
On the flip side, China has imposed its own tariffs, hitting U.S.-origin semiconductors with a 34% duty. However, since China views Taiwan as part of its territory, U.S. chip giants such as AMD and Nvidia, which rely on Taiwan’s TSMC for manufacturing, are effectively exempt from these tariffs.
Chinese analysts acknowledge the potential short-term disruptions caused by these tariffs but see them as a catalyst for speeding up domestic innovation in the semiconductor sector, which may benefit China’s industry over the long run.
Reports from Taiwan indicate that TSMC is ramping up the construction of a new semiconductor fabrication plant in Arizona, aimed at ensuring a steady supply of U.S.-produced chips as trade tensions continue to disrupt the global semiconductor sector.
Meanwhile, in the equity markets, investors in China are awaiting more clarity on the tariff situation before making their next move. The Shanghai SSE Composite Index has gained 0.8%, Shenzhen’s SZSE has increased by 0.9%, and Hong Kong’s Hang Seng Index is up 2.4%.
In the crypto space, Hong Kong’s Bosera HashKey Ether Exchange-Traded Fund (ETF) has been approved to offer staking services, following new guidance from the city’s Securities and Futures Commission.
Despite these developments, ether ETFs are facing challenges in the broader market. Bloomberg ETF analyst Eric Balchunas pointed out that short ether ETFs have performed the best, while ether itself has fallen by 47% in the last year, according to CoinDesk data. In contrast, the CoinDesk 20 index has risen 14% over the same period.
