Bitcoin Tops $84.5K, Looks to End Downtrend as Trump Exempts Key Tech From Reciprocal Tariffs
The leading digital asset, Bitcoin (BTC), soared past the significant $84.5K mark in early April 2025, once again capturing headlines in the cryptocurrency market, which is well-known for its characteristic volatility. This price movement comes amidst a complex interplay of technical chart patterns, shifting macroeconomic sentiment, and, notably, evolving US trade policies that have kept global markets on edge. As Bitcoin trades firmly in the mid-$80,000s, analysts and investors are keenly observing whether this rally signals a definitive end to the recent downtrend or merely a pause in a larger correction.
As of April 13, 2025, Bitcoin’s price hovers around the $84,600 to $85,500 range, reflecting a period of intense fluctuation. Data from various exchanges and market trackers like Markets Insider and Coinbase show Bitcoin reclaiming levels seen earlier in the month after experiencing dips potentially linked to broader economic anxieties. Sources noted Bitcoin reaching $84,596 on April 4th and traders eyeing an $84.5K breakout around April 1st, a level that seems to be acting as both resistance and a psychological benchmark. The recent climb represents a recovery from lower levels seen just days prior, highlighting the asset’s sensitivity to short-term news flow and prevailing market mood.
The technical picture for Bitcoin is still mixed, creating an uncertain landscape. On longer time frames, such as the weekly chart, indicators suggest underlying strength. The 50-week and 200-week simple moving averages (SMAs) are sloping upwards, historically a bullish signal, with the 50-week SMA around $76,600 recently acting as support. Analysts point to these long-term trends and potential bullish divergences on the Relative Strength Index (RSI) as reasons for optimism, suggesting the primary uptrend remains intact.
However, shorter time frames present a more cautious view. The daily chart shows Bitcoin trading below its 200-day moving average, which is currently sloping upwards but acting as potential resistance. The 50-day moving average on the daily chart is sloping down, indicating recent bearish momentum. Furthermore, analysis from CryptoQuant highlights concerning signals from short-term holders, whose realized price metrics are starting to curve downward, a pattern previously observed near market peaks in 2021 and early 2025. This suggests newer investors might be nearing a point of realizing losses, potentially adding selling pressure. Adding to this, increased movement of long-dormant coins onto exchanges (Coin Days Destroyed or CDD inflow) often precedes price corrections, as long-term holders potentially look to take profits. Key price levels analysts are watching include potential downside targets near $71,000 if current support fails, and the crucial $91,000 mark, which needs to be decisively overcome to confirm a bullish continuation.
Trump Administration Eases Tech Tariffs A Breather for Markets?
A significant factor contributing to the recent market turbulence, and potentially Bitcoin’s latest price action, stems from the arena of international trade policy. In a notable development, the Trump administration announced late last week that it would exclude a range of key electronic products from its aggressive “reciprocal” tariff regime. This move provides a significant buffer for popular consumer electronics, many of which are predominantly manufactured in China and other Asian nations.
According to notices from U.S. According to Customs and Border Protection (CBP), the recently imposed taxes won’t apply to items like smartphones, laptops, computer monitors, hard drives, various semiconductor chips (processors, memory), and even the equipment used to make semiconductors. These exemptions apply to both the baseline 10% global tariff and the much steeper tariffs targeting China, which had reportedly reached as high as 145% following retaliatory measures.
This decision marks a significant step back, or at least a strategic pause, from the administration’s earlier hardline stance unveiled around April 2nd, dubbed “Liberation Day,” which promised sweeping tariffs and sent shockwaves through global markets. The initial tariff announcements, particularly those aimed at China, had severely impacted investor confidence and led to sharp sell-offs, especially in the technology sector. Fears that escalating trade wars could derail economic growth and disrupt crucial supply chains reflected in the immediate market decline of the “Magnificent Seven” tech stocks. The rationale behind the exemptions appears multifaceted. Primarily, it acknowledges the reality that shifting the manufacturing of complex electronics like iPhones and advanced semiconductors to the U.S. is a long-term, potentially multi-year endeavor, if feasible at all for certain products.
Imposing heavy tariffs immediately would likely translate into significant price hikes for American consumers on essential goods, fueling already present inflation concerns. The move also likely reflects intense lobbying from major tech companies like Apple, Samsung, Dell, and chipmakers such as Nvidia and TSMC, whose operations rely heavily on global supply chains, particularly involving China and Taiwan. According to reports, these businesses had engaged the administration, possibly reiterating promises made during Trump’s first term regarding U.S. investments in exchange for relief from tariffs on essential goods. While the White House maintains its push for onshoring manufacturing, stating that companies are “hustling” to bring production stateside, the exemptions provide immediate relief. Analysts like Dan Ives at Wedbush Securities called the news a removal of a “huge black cloud overhang” for the tech sector, predicting a rally as fears of drastically increased costs and supply disruptions eased. However, some reports suggest this relief might be temporary, possibly paving the way for new, potentially lower, China-specific tariffs on these exempted goods later, with President Trump indicating more information on semiconductor tariffs would follow.
Connecting the Dots Trade Policy and Bitcoin’s Trajectory
The intricate relationship between macroeconomic policies, like tariffs, and the price of digital assets like Bitcoin is becoming increasingly evident. While not always a direct one-to-one correlation, shifts in trade policy demonstrably impact market sentiment, risk appetite, and capital flows, all of which influence Bitcoin’s price.
The immediate market reaction to the tariff news provides a clear example. Bitcoin experienced a sharp drop, plunging around 8.5% on the day the broad tariffs were announced in early April, even as traditional equity indices like the S&P 500 showed more resilience. This highlighted Bitcoin’s sensitivity, often acting as a high-beta asset that exaggerates moves seen in wider markets, particularly in response to perceived increases in economic risk and uncertainty. Analysts directly linked this drop to shaken investor confidence following the tariff announcements, with some suggesting BTC risked falling towards $71,000.
Conversely, the subsequent news of exemptions for key technology sectors appears to have contributed to a stabilization and partial recovery in Bitcoin’s price. Reports noted Bitcoin gaining as “Trump tariff concerns ease,” suggesting that the removal of this immediate threat allowed risk appetite to return, at least partially. Cointelegraph and others explicitly linked the tariff talk that was keeping markets nervous to the volatility that occurred within the $83,000-$84,500 range during this time period. This dynamic reflects the broader “risk-on/risk-off” paradigm. In the short term, aggressive tariffs and the threat of escalating trade wars increase global economic uncertainty. Investors are frequently prompted by this to shift their focus away from assets that they perceive to be more risky, such as cryptocurrencies and tech stocks, and toward safer havens like gold, government bonds, or cash. Therefore, the initial tariff threats likely triggered a risk-off response impacting Bitcoin negatively, while the exemptions provided a degree of risk-on relief.
However, the longer-term implications could be different. Persistent trade tensions, higher tariffs leading to sustained inflation, and potential competitive currency devaluations could actually bolster the case for Bitcoin. Bitcoin’s claim to be “digital gold,” a scarce, non-sovereign asset resistant to inflationary pressures, could gain traction if tariffs contribute to rising consumer prices and reduce the purchasing power of fiat currencies. As seen in countries experiencing high inflation or economic instability (like Argentina or Turkey historically), citizens may increasingly turn to cryptocurrencies to preserve wealth. As a result, disruptive trade policies could potentially boost Bitcoin’s appeal as a long-term value store and hedge against macroeconomic instability, despite the fact that they could hurt Bitcoin in the short term due to uncertainty. Furthermore, tariffs can have specific impacts on the crypto industry itself. Levies on imported semiconductor chips and specialized mining hardware (ASICs, GPUs), much of which is manufactured in Asia, could increase the capital and operational expenditures for Bitcoin miners, potentially squeezing profit margins and influencing network hash rates or geographical distribution of mining operations.
Beyond Tariffs Broader Forces Shaping Bitcoin’s Future
While the recent focus has been on trade policy, it’s crucial to remember that Bitcoin’s price is influenced by a wide array of factors. The tariff news is just one piece of a much larger puzzle. Institutional adoption remains a key theme. Spot Bitcoin ETFs’ introduction and performance in the US and possibly other jurisdictions continue to be significant. Inflows and outflows from these products are closely watched as indicators of institutional sentiment and demand.