Crypto Market Rebounds After Tariff Relief
The cryptocurrency market experienced a significant rebound, with Bitcoin leading the charge, following the announcement that the US would exempt certain technology products from tariffs imposed on China and other countries. This decision, attributed to Donald Trump, is viewed by market participants as a positive development in the ongoing US-China trade dispute.
Crypto Market Rallies on Tech Tariff Exemption
Following the news, reported by CNBC, that the US President exempted phones, computers, and chips from new tariffs, the crypto market surged. Bitcoin's price swiftly climbed past $85,000, and many altcoins also saw substantial gains. This positive development lessens the impact of the broader tariff increases imposed earlier in the month.
The impact extends beyond crypto. This exemption is a significant win for the stock market, particularly benefitting companies like Apple. The positive correlation between Bitcoin and traditional equities likely contributed to the crypto market's concurrent rebound.
This development could also signal a potential de-escalation in the US-China trade war. China's recent announcement of a 125% tariff on US imports followed the US's imposition of 145% tariffs on Chinese goods. However, Trump's expressed interest in reaching a trade deal offers further optimism for the market. A successful trade agreement could trigger another significant rally in Bitcoin and altcoins.
Market Correction Potential: Analyst Perspectives
Crypto analyst Kevin Capital recently suggested on X that the crypto market's correction phase might be nearing its end. While the correction has followed his anticipated trajectory, he cautions that significant challenges remain. He highlighted the importance of Bitcoin clearing the $89,000 level for sustained market confidence, along with aligning macroeconomic factors.
Positive macroeconomic indicators include the Federal Reserve's plans to provide liquidity if needed, and recent inflation data (CPI and PPI) coming in lower than projected. These factors may encourage the Fed to ease monetary policy further. However, analyst Rekt Capital reminds that Bitcoin still needs to achieve a weekly close above $86,000 for a truly bullish signal, echoing a mid-2021 breakout.
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