Bitcoin and Crypto Markets Gain Momentum as Tariff Exemptions Boost Risk Appetite

Bitcoin (BTC) and major cryptocurrencies like Ethereum (ETH), Ripple (XRP), and Cardano (ADA) saw significant price jumps over the weekend, reflecting a shift towards risk-on sentiment in the market.

Bitcoin rose by over 1.5%, reaching $84,900 on Saturday as it aimed to reverse its three-month downtrend. This rally came in the wake of new tariff exemptions introduced by the Trump administration, which included key products like smartphones, computers, chips, and electronics. The U.S. Customs and Border Protection published a list of these exemptions, which apply to President Trump’s 125% tariff on Chinese imports and the baseline 10% global levy.

“The U.S. imports more than $60 billion worth of smartphones annually, and these exemptions cover some of the most essential imports, signaling a shift in U.S. trade policy amid bond market pressures,” noted The Kobeissi Letter on X.

Despite increasing trade tensions between the U.S. and China, where both countries have imposed tariffs exceeding 100% on each other’s imports, certain segments of the financial market are pricing in disinflationary expectations within the U.S. This contradicts widespread inflation concerns and suggests that the Federal Reserve might have room to cut interest rates soon.

Bitcoin’s price chart suggests it is attempting to break out above the descending trendline that has characterized the recent sell-off from its all-time highs above $109K. If successful, this breakout could attract additional chart-driven buying.

Meanwhile, other major altcoins like Ethereum (ETH), Ripple (XRP), and Cardano (ADA) surged by 6%, signaling a broader trend of increased risk appetite across the cryptocurrency market. The total market capitalization of stablecoins USDT and USDC held steady above $200 billion, nearing their record levels.

The positive momentum in the crypto markets over the weekend suggests a favorable outlook for traditional markets when Wall Street opens on Monday.