Bitcoin is up over the weekend, now trading over $84,900, with a weekend gain of 1.5%. This modest increase represents a potential reversal after three consecutive months of decline. That decline came after the cryptocurrency experienced a massive sell-off once prices blasted through the $109,000 barrier. A breakout above that successful trendline could potentially pull in more buyers looking at the charts, in turn reinforcing the cryptocurrency’s price with more buying pressure.
The top two stablecoins, USDT and USDC, have continued to maintain their dominance with a combined market capitalization of over $200 billion. They are about to reach their all-time high! This stability in stablecoins is typically a sign of overall confidence and liquidity in the cryptocurrency market.
The United States seems intent on doing the opposite, taking steps to significantly reduce trade tensions with China. It’s accomplishing this by exempting important technology imports from its reciprocal tariffs. Until that point, both countries had placed hefty import tariffs of more than 100% on each other’s products. A few months ago, the U.S. Customs and Border Protection released its first list of exclusions from President Donald Trump’s 125% tariff on everything Chinese. They built in exemptions from the overall 10% global levy.
Some of our most essential imports are exempt from these rules altogether. That would have included smartphones for which the U.S. runs an annual trade deficit exceeding $60 billion. This change indicates that the U.S. could be making a major concession in its month-long trade war.
"After all, the bond market is forcing Trump to concede." - The Kobeissi Letter
Providing even more positive momentum for the cryptocurrency market, including on the weekend. This trend indicates that Wall Street is likely to experience sizable price appreciation once mainstream markets open again. Reducing geopolitical tensions and trade tensions is always a path to greater stability, especially in the borderless crypto sphere. This stability might, in turn, strengthen more general financial markets.
