Bitcoin and the Crypto Market Rebound Following Donald Trump's Decision to Exempt Tech Products From Tariffs

The crypto market, led by Bitcoin, has rebounded following Donald Trump's decision to exempt tech products from tariffs he has imposed on China and other countries.

The crypto market has rebounded following Donald Trump’s decision to exempt tech products from tariffs he has imposed on China and other countries. Market participants are highlighting this development as positive amid the ongoing trade war between the US and China.

According to a recent report by CNBC, the US president has exempted phones, computers, and chips from the new tariffs. The report highlights that the administration has been considering exempting these products for several weeks.

Following this news, the Bitcoin price surged past the $85,000 mark, with other altcoins also recording significant gains. This development is undoubtedly bullish for the market as it reduces the severity of the tariffs that Trump imposed on almost all countries earlier this month.

This represents a big win for the stock market, with companies like Apple the biggest beneficiaries of this exemption. As such, it is normal for the crypto market to rebound alongside, given Bitcoin’s correlation with stocks.

Moreover, this move could mark the beginning of the end of the ongoing trade war between the US and China. As CoinGape reported, China yesterday announced a 125% tariff on US imports following the latter’s decision to impose 145% tariffs on Chinese goods.

Trump already mentioned that he is looking forward to making a deal with China, which is also positive for the market. Bitcoin and altcoins could witness another massive rally once that happens.

Correctional Phase Could Soon Be Over

In a recent X post, crypto analyst Kevin Capital suggested that the correctional phase could soon be over for the crypto market. He noted that this phase has so far gone according to plan. However, he warned that there is still a lot of work to be done.

"We still need to see BTC clear $89k for Mkts to start feeling good (which would also align with the last pivot highs at $88k fib and $89k to complete the count). And we need the macro side to line up for things to start looking really good."

The analyst stated that it is important for the Bitcoin price to clear the $89,000 level before market participants start feeling good. He added that the macro side also needs to line up for things to start looking really good for the market.

The macro side looks to be progressing well as the Federal Reserve recently revealed plans to provide liquidity if necessary. Meanwhile, the latest CPI and PPI inflation data came in lower than expectations, which could also motivate the Fed to start easing monetary policies.

Crypto analyst Rekt Capital warned that Bitcoin isn’t there yet. He stated that it would be momentous to weekly close above $86,000, as this would potentially set BTC up for a repeat of a mid-2021 breakout. However, the flagship crypto is still away from the bullish weekly close of $86,811.