Trump's Tariff Cut Gives Tech Stocks a Lift, Crypto Next to Benefit?

- Trump's tech tariff exemption triggers immediate market reaction: Bitcoin (>$85k) & S&P surge. - Surge linked to eased tech burden, though experts divided on long-term outlook. [Unblock Media] The price of Bitcoin surged past $85,000 on April 12, indicating a sharp rise in the cryptocurrency market. This surge is seen as a swift market response to U.S. President Donald Trump's decision to exempt major tech products such as smartphones, chips, and computers from reciprocal tariffs. On April 9, when President Trump announced a 90-day tariff deferral and a 10% reduction in tariffs for some countries, Bitcoin reflected optimism by rising 9% and the S&P 500 index rose more than 10%. According to the U.S. Customs and Border Protection, this measure exempts various electronic components such as storage cards, modems, diodes, and semiconductors from tariffs. The easing of concerns about tariff impacts on tech product supply chains led to a significant reduction in pressure on tech stocks. On April 12, The Kobeissi Letter suggested on X (formerly Twitter), "Global tech giants find themselves in a favorable position," indicating the positive effects of tariff relaxation. Additionally, the positive correlation between the tech stock market and the cryptocurrency market is pointed out as another driving factor for this upward momentum. Analysts explain that the Nasdaq index, which is tech stocks-dominated, and Bitcoin prices often show similar trends, especially during periods of strong risk appetite. The combined factors leading to the simultaneous rise of the S&P 500 and Bitcoin amid the tariff relief include reduced tariff burdens leading to reduced import costs and supply chain uncertainties for tech companies, raising expectations for improved profitability. Given the significant portion tech stocks occupy within the S&P 500, the recovery of these companies has driven the overall index upward. For Bitcoin, the signal of easing trade tensions improved market risk sentiment, likely increasing investor interest in riskier assets such as Bitcoin. However, expert views on this measure are mixed. Macroeconomic trader Raoul Pal interprets the tariff policy as a 'positioning' strategy by the U.S. for the US-China trade negotiations. Contrarily, Bitcoin proponent Max Keiser expresses skepticism. He argues that the tariff exemption on certain tech products doesn't resolve fundamental issues such as rising U.S. bond yields or declining confidence in the dollar and is insufficient to achieve interest rate cut goals. Keiser stated on X, "Concessions on tech exports will not reverse the trend of rising interest rates" and "the declining trust in U.S. bonds and the dollar will continue." He added that such distrust in the fiat system might be positive for Bitcoin in the long run. In conclusion, the recent tariff exemption serves as a short-term favorable factor for both the tech industry and the cryptocurrency market, illustrating the close interrelation between macroeconomic changes and market sentiment.