Bitcoin Stable as Electronics Tariff Messaging Shifts
Bitcoin stayed close to $84,500 on Monday because market participants assessed how U.S.-China trade battles and White House technology tariff shifts would affect digital currency prices.
The mainstream stock and oil market gains didn’t impact Bitcoin’s stability which showed the market’s temporary freedom from economic forces.
On Friday, the White House gave investors relief as they announced consumer electronics such as smartphones and computers would be ignored during the new round of tariff enforcement. CBP agency confirmed this decision through their published list of excluded items, which helps tech giants Apple and Nvidia.
Electronics Supply Chain Under New Tariff Threat
The news direction noticeably changed through the weekend. Commerce Secretary Howard Lutnick revealed that the market relief for electronic products would not be permanent since broad tariffs would start soon.
Through his Truth Social post on Sunday, Donald Trump denied any previously granted exemptions. He announced:
“NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China[…] We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
Policy shiftbacks created confusion about the administration’s tactics and analysts noted the practice of making big gestures followed by late concessions to keep China talks alive.
Global Markets React Uncertainly to Tariffs
Global financial markets gave ambiguous market reactions to the latest developments. S&P 500 June futures hit a short-term target of 5,500 points with a 3.5% increase when US investors bought stocks.
The energy market reacted positively when traders updated their expectations about energy use because of economic policy worries created by tariffs.
Traditional safe haven investments kept performing the same as before this event happened. U.S. and Chinese bonds increased their yields by 0.20%, while gold lost 0.11% of its value due to minimal expectations of future price shocks.
During market turmoil Bitcoin maintained stable price levels showing it is now seen differently as a digital asset. As Bitcoin moves separately from risk-on equities and reacts minimally to economic information, people now see it as a stand-alone asset class for the moment.
According to Nexa Capital’s head of macro strategy Alyssa Grant, users seem to view Bitcoin as a safe investment due to its durability during recent market turmoil.
