Crypto Markets Rally on Trade News

CRYPTO
Crypto Markets Rally on Trade News

Bitcoin jumped over 1.5% to $84,900 on Saturday, aiming to reverse a three-month downtrend after the U.S. Customs and Border Protection issued tariff exemptions for key tech imports like smartphones and computer chips. These exclusions soften the blow from Trump’s aggressive 125% China tariffs and a 10% global levy, signaling a potential concession in the ongoing U.S.-China trade war.

Analysts noted that the exemptions cover over $60 billion in annual smartphone imports, indicating mounting pressure from financial markets on U.S. policy. As tensions escalated between the two nations with tariffs exceeding 100%, markets appeared to price in disinflation, suggesting the Federal Reserve might soon have room to cut rates. On the technical side, Bitcoin looks poised to break above a descending trendline, potentially attracting more bullish traders. Altcoins ETH, XRP, and ADA surged 6%, pointing to increased risk appetite across crypto. Stablecoin market caps remained above $200 billion, near record highs.

FINANCE
Markets Signal Rapid De-Dollarization

President Trump added fresh uncertainty to global markets by exempting key tech imports—like smartphones, chips, and flat-panel TVs—from his steep tariffs. This move boosted U.S. tech stocks and sent indexes soaring midweek, with a 90-day pause on tariff hikes offering short-term relief. Analysts, including Wedbush’s Dan Ives, called it a major win for tech investors. But while equities rallied, the bond and currency markets painted a different picture.

Treasury yields resumed climbing after a brief drop, and the dollar continued to weaken. Experts warn the U.S. is losing its safe-haven status as global investors pivot away from dollar-based assets. Former Treasury Secretary Larry Summers noted U.S. bonds now behave like emerging market debt, and Deutsche Bank’s George Saravelos said de-dollarization is accelerating. Amid rising debt and fading global trust, the U.S. is facing deeper structural shifts. Trump’s tariff twists may be fueling a long-term reassessment of American financial dominance.

FINANCE
Dimon Urges Reform to Stabilize Treasuries

JPMorgan CEO Jamie Dimon warned that the Federal Reserve cannot allow the Treasury market to freeze as it did in 2008. He urged reforms to capital requirements that currently prevent banks from stepping in during times of stress. While these rules were meant to avoid another financial crisis, officials like Treasury Secretary Scott Bessent and Fed Chair Jerome Powell agree some adjustments could strengthen market liquidity.

A recent bond sell-off has driven yields higher and shaken confidence in U.S. debt, long considered a safe haven. Dimon emphasized that regulatory limits, such as the supplementary leverage ratio, are stopping banks from acting as market stabilizers. During COVID-19, the Fed temporarily eased these rules, allowing banks to buy more Treasuries—something Bessent now wants to make permanent. With global investors backing away from U.S. bonds and volatility rising, Dimon said urgent changes are needed to avoid another crisis, adding, “It’s relief to the markets, not the banks.”

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.