Bitcoin price surges past $84,000 as US tariff exemptions signal a shift in the global economic landscape.
A Break in the Downtrend: Bitcoin‘s Bullish Price Action
Bitcoin (BTC) has seen a significant surge, rising over 1.5% to reach $84,900. This marks a potential end to its three-month downtrend, as new U.S. tariff exemptions have been announced by the ‘Trump administration’.
The value of Bitcoin can fluctuate significantly due to market demand and supply.
The price of Bitcoin is determined by the free market, with factors such as global economic trends, investor sentiment, and regulatory changes influencing its value.
According to historical data, Bitcoin's price has experienced rapid growth, followed by periods of decline.
For example, in 2017, the price of Bitcoin reached an all-time high of $19,666 before dropping to around $3,000 in 2019.
Exemptions from Reciprocal Tariffs: A Sign of Concession in the Trade War
The U.S. Customs and Border Protection has excluded big tech products, including smartphones, computers, chips, and other electronics, from President Donald Trump‘s 125% China tariff and his baseline 10% global levy. This move is seen as a concession in the trade war between the U.S. and China.
Increased Risk-Taking in the Crypto Market
Major alternative cryptocurrencies like ‘Ethereum (ETH)’, XRP, and ADA have surged by 6% on the day, indicating increased risk-taking in the broader crypto market. The cumulative market cap of top two stablecoins, USDT and USDC, has held steady above $200 billion.
A Potential Catalyst for Price Gains
The positive momentum in the crypto market suggests that it could be a catalyst for price gains on Wall Street come Monday. Bitcoin‘s daily chart shows that it is looking to establish a foothold above the descending trendline characterizing the steep sell-off from record highs above $109K.
Market Analysis and Outlook
The bond market’s expectations of a potential rate cut by the ‘Federal Reserve’ could also be influencing the market. Despite trade tensions, some sections of the financial market have priced in disinflation, which could lead to increased buying pressure on Wall Street.
The chart-driven buyers may take notice of Bitcoin‘s trendline breakout, potentially enticing more buyers to the market. However, it is essential to note that the market can be volatile and subject to sudden changes.
