- Bitcoin Price has surged to nearly $85,000 while other cryptocurrencies show double-digit gains following Trump’s 90-day tariff pause.
- Trump’s decision to exempt tech products like smartphones from Chinese tariffs has boosted both stock and crypto markets.
- Technical analysis suggests Bitcoin remains vulnerable below the 50-day moving average, with potential retreat to $76,495 if Trump reverses his tariff policy.
Cryptocurrency prices have rebounded significantly in recent days after Donald Trump announced a 90-day pause on tariffs targeting most countries. Bitcoin climbed to nearly $85,000, while other digital assets including Flare, Fartcoin, Ethereum, and Pepe recorded double-digit gains. However, market analysts warn that Trump’s history of policy reversals could potentially trigger a market retreat.
The cryptocurrency market rally followed Trump’s decision to implement a 90-day pause on tariffs affecting over 70 countries. This move was interpreted as a sign of flexibility and willingness to negotiate with cooperative nations such as Japan and South Korea, boosting investor confidence across financial markets.
Further supporting the market upswing, the administration announced it would China/”>exempt smartphones and semiconductors from tariffs on Chinese goods. This exemption was seen as practical since a 145% tariff on Chinese-manufactured iPhones would have made them unaffordable to American consumers and highlighted price differences before and after tariff implementation.
Technology Stocks and Crypto Correlation
The tariff exemptions triggered significant gains in technology stocks, with the Nasdaq 100 index rising more than 310 points. Apple shares jumped 3.8% while Microsoft gained over 1.5%. Other tech giants including NVIDIA and AMD also posted strong gains.
This tech stock rally has positive implications for cryptocurrencies due to their established correlation. This relationship explains why Bitcoin and other cryptocurrencies like Fartcoin and Solana have experienced significant price increases recently.
Risk Factors and Technical Analysis
A major risk for cryptocurrency prices stems from Trump’s tendency to change policy positions rapidly, often influenced by media coverage. For instance, he modified his stance multiple times last week when increasing tariffs on Chinese goods before ultimately excluding electronics from the tariff list.
Technical analysis of Bitcoin suggests caution despite recent gains. The chart indicates Bitcoin remains below its 50-day moving average, signaling persistent bearish pressure. The cryptocurrency currently lacks a defined trend, leaving it vulnerable to potential drops toward the $76,495 support level established on March 11. A breakdown below this threshold could trigger further decline toward $70,000 and potentially spark broader selling across the cryptocurrency market.
If Trump decides to end his 90-day tariff pause, particularly if China does not respond to his current policies with concessions, cryptocurrency prices could experience a significant crash as recession concerns intensify.
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