Bitcoin Surges Past $84.5K Amid Trade Tariff Changes; Other Cryptos Gain Momentum
By Omkar Godbole
Updated: April 12, 2025, 3:17 PM | Published: April 12, 2025, 2:42 PM
Bitcoin (BTC) has seen a notable resurgence, climbing over 1.5% to reach approximately $84,900. This increase marks an attempt to break a three-month downtrend in price, coinciding with the latest decisions from the Trump administration regarding tariffs on key technology imports.
Tariff Exemptions Bolster Market Sentiment
Recent guidance from U.S. Customs and Border Protection has exempted major technological products—including smartphones, computers, and microchips—from President Donald Trump’s existing tariffs that have a base of 10% globally, alongside a substantial 125% tariff on imports from China. This move is viewed as a significant concession in the ongoing trade war between the United States and China, which has seen escalating tensions in recent weeks.
“The US imports over $60 billion of smartphones per year. These exemptions cover some of the most crucial imports in another sign of the U.S. conceding in the trade war,” noted The Kobeissi Letter on social media platform X. The commentary suggests that pressures from the bond market are compelling adjustments in trade policy.
Bitcoin Price Trends
With the onset of this positive news, Bitcoin’s price action has sparked optimism among traders. Technical indicators reveal that BTC is looking to establish a foothold above its previous trendline, which had characterized a severe sell-off from its historic highs of over $109,000. A successful breakout above this line could attract more buyers from the chart analysis community, potentially leading to further gains in the days ahead.
Rise in Alternative Cryptocurrencies
In addition to Bitcoin’s growth, alternative cryptocurrencies have also gained traction. Notably, Ethereum (ETH), Ripple (XRP), and Cardano (ADA) have all risen by 6% in the same timeframe, signaling a broader appetite for risk in the cryptocurrency market. The cumulative market capitalization of the top stablecoins, USDT and USDC, remains robust, holding steady above $200 billion, not far from historical highs.
As cryptocurrency markets began trading over the weekend, the buoyancy suggested potential positive performance on Wall Street as the new trading week opens.
Market Implications
The overall increase in cryptocurrency prices comes amid shifting sentiments in financial markets, which appear to be pricing in expectations of disinflation in the U.S. This contrasts sharply with prevailing fears around inflation and could pave the way for the Federal Reserve to consider cutting interest rates in future policy meetings.
As Bitcoin and other cryptocurrencies continue to adjust in response to economic developments, market participants will be watching closely to gauge the sustainability of this upward momentum.
For ongoing updates and detailed market analysis, readers are encouraged to subscribe to the "Crypto Long & Short" newsletter.
About the Author
Omkar Godbole is the Co-Managing Editor of CoinDesk’s Markets team, based in Mumbai. He holds a master’s degree in Finance and is a member of the Chartered Market Technician (CMT) organization. Omkar has previously worked in research and analysis on currency markets and maintains a modest portfolio of cryptocurrencies including Bitcoin and Ether.
Share this article:
