Crypto Market Rallies as Bitcoin Breaks Out Following Tariff Exemption News
Bitcoin (BTC) and leading altcoins such as Ethereum (ETH), Ripple (XRP), and Cardano (ADA) experienced notable gains over the weekend, highlighting a renewed risk-on sentiment in the cryptocurrency space.
Bitcoin surged more than 1.5%, reaching $84,900 on Saturday as it looked to break a three-month downtrend. This rally came after the Trump administration announced new tariff exemptions, including key products such as smartphones, computers, chips, and electronics. U.S. Customs and Border Protection revealed a list of these exclusions, which apply to President Trump’s 125% tariff on Chinese imports and his baseline 10% global levy.
“The U.S. imports over $60 billion worth of smartphones each year, and these exemptions target crucial imports, signaling a shift in U.S. trade policy amid pressure from bond markets,” noted The Kobeissi Letter on X.
Despite heightened trade tensions between the U.S. and China, with both countries imposing tariffs exceeding 100% on each other’s goods, parts of the financial market have begun to price in expectations of disinflation in the U.S. This stands in contrast to widespread inflation concerns and has led to speculation that the Federal Reserve may soon be able to lower interest rates.
On the technical front, Bitcoin’s price chart indicates it is attempting to break above a key descending trendline that has marked its recent decline from an all-time high of over $109K. A successful breakout could spark further buying from technical traders, potentially driving the price higher.
Meanwhile, other major cryptocurrencies like Ethereum (ETH), Ripple (XRP), and Cardano (ADA) saw impressive gains of 6%, reflecting an overall trend of increased risk-taking in the broader crypto market. The combined market capitalization of stablecoins USDT and USDC remained above $200 billion, just short of record highs.
The positive momentum in the crypto market this weekend suggests that the outlook for traditional markets could improve when U.S. stocks open on Monday.
