Bitcoin Tops $84.5K, Looks to End Downtrend as Trump Exempts Key Tech From Reciprocal Tariffs

Bitcoin Eyes Trend Reversal, Climbs Past $84,900 Amid U.S. Tariff Exemptions and Market Optimism

Bitcoin (BTC) surged over 1.5% on Saturday, reaching $84,900 as it attempts to break free from a prolonged three-month downtrend. The upward momentum comes in the wake of newly issued tariff exemption guidelines from the Trump administration, which notably exclude key electronic imports—including smartphones, computer components, and semiconductor chips—from the latest wave of U.S. trade penalties.

Published by U.S. Customs and Border Protection, the updated exemptions offer relief from the recently announced 125% tariffs on select Chinese goods, along with a global 10% baseline levy. These policy shifts appear to signal a strategic softening of Washington's hardline stance in the ongoing U.S.–China trade conflict.

"The U.S. imports over $60 BILLION worth of smartphones annually. These exemptions cover some of the most crucial tech imports, and it's yet another sign of the U.S. conceding in the trade war. After all, the bond market is forcing Trump to bend," remarked The Kobeissi Letter in a statement on X.

Trade tensions between the world's two largest economies escalated sharply this week, with both countries imposing retaliatory tariffs exceeding 100%. However, despite the geopolitical strain, key segments of the financial market are now pricing in disinflation across the U.S. economy—countering dominant inflationary narratives and raising hopes that the Federal Reserve could soon find room to cut interest rates.

From a technical standpoint, Bitcoin's latest price action suggests a potential breakout above the descending resistance trendline formed during its sharp decline from all-time highs above $109,000. A confirmed breakout could attract momentum-driven buyers, increasing the likelihood of a sustained rally.

Broader crypto market sentiment also reflected renewed risk appetite, with major altcoins such as Ethereum (ETH), Ripple (XRP), and Cardano (ADA) posting strong daily gains of around 6%. Meanwhile, the combined market capitalization of top stablecoins USDT (Tether) and USDC (USD Coin) held steady above the $200 billion threshold—hovering near record levels and underscoring ongoing demand for dollar-pegged assets as liquidity anchors.

As crypto markets remain open through the weekend, the positive momentum could potentially spill over into traditional equity markets when Wall Street opens Monday, offering traders a glimpse of optimism amidst macroeconomic uncertainty.