For the second time this week, Bitcoin has broken through another resistance level. It’s now trading above $85,000, lifted by a new wave of investor confidence following tariff-related news out of the United States.
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Tariff U-turn Sparks Relief
Donald Trump’s initial tariff announcement two weeks ago sent markets into a panic. Stocks tanked, and crypto slipped right after. The policy – branded “Liberation Day” – imposed new tariffs on imports from over 60 countries.
But China took the hardest hit. After retaliating, China found itself facing increased rates again. Now, nearly all of its exports to the U.S. are subject to a 145% tariff. In response, China slapped a 125% tariff on American goods.
But meanwhile, something shifted. Trump walked back part of the plan – not for China, but for everyone else. A 90-day pause was announced on most tariffs, giving room for negotiation. The message was simple: we’re not pushing this over the edge – at least not yet.
Then came today’s news: a carve-out for electronics, including those from China. U.S. tech giants – from Apple to Nvidia – will no longer be hit with extra tariffs on imports like semiconductors, microchips, and core components. It may sound narrow, but it has big implications.
Why Electronics Matter for Crypto
Most people don’t think of Bitcoin when they hear “microchips” – but tech investors make that connection instantly.
Hardware like GPUs and chips are central to the production of Bitcoin mining equipment. They’re also essential to data centers powering the entire blockchain ecosystem – from on-chain data analysis to smart contract execution. With electronics exempted from the new tariffs, supply chains just became a bit more predictable.
More than that, companies like Nvidia, Microsoft, and Apple are tightly linked to market sentiment. If they’re hit hard, the ripple effect spreads everywhere – including into crypto. The exemption means less disruption for them and more breathing room for tech-focused investors.
There’s another angle too: the exemption shows Trump is willing to adjust. That gives investors a reason to hope this trade war won’t go completely nuclear – and hope is all it takes to push markets higher.
Crypto Reacts First – Because It’s Always Open
While the stock market is still paused for the weekend, Bitcoin has no such break. Crypto runs 24/7 – and when big news hits, it moves fast.
Within hours of the electronics announcement, Bitcoin shot past $85,000. Ethereum climbed too, pushing back above $1,600. XRP ticked up to $2.15. And Solana – which had been quietly lagging – pulled off a sharp 9% move, bouncing to $130.
This wasn’t just a technical bounce. It was emotional too – a wave of relief among traders who had been bracing for more chaos, but got a pause instead.
Temporary Calm, Lingering Questions
Still, none of this solves the bigger problem. China isn’t part of the tariff pause. Its 145% rate is still in place – and so is the 125% response. We’re looking at a split global trade setup: one set of rules for most countries, another entirely for China.
While U.S. tech might be breathing easier for now, many sectors that depend on Chinese manufacturing still face pressure. And for the rest of the world, 90 days is not much time. If negotiations collapse, we’re back where we started – or worse.
For now, the market is enjoying a small win – or at least, a less threatening headline. But this isn’t over. The situation could shift again, fast.
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