According to CryptoQuant Insights report, after Trump announced a 90-day tariff suspension, Bit experienced a rebound, and ETH and XRP's decline also narrowed. Despite the Bit rebound, CryptoQuant's bull market score index dropped to 10, reaching its lowest level since November 2022. The index must break through 40 to indicate a sustained bullish momentum.
CryptoQuant analyzed that Bit's current resistance is between $84,000 and $96,000. If the bullish momentum weakens, Bit's gains might be limited in this price range, similar to past bear market cycles.
The tariff suspension eased trade tensions but failed to reverse on-chain indicators such as declining network activity and stablecoin liquidity. Bit dropped 27% earlier this week, the most dramatic decline in this cycle, highlighting its fragility. CryptoQuant concluded that the bull market index trend depends on whether investor confidence can be reignited, and the market still needs to remain cautious.
Santiment: Tariff Exemption Policy Triggered Crypto Market Rebound
Santiment's report indicates that Trump's weekend tariff exemption policy instantly triggered a crypto market surge. The impact of high import costs on the tech industry has significantly weakened. Bit recovered to the weekend high of $85,900, breaking through the resistance around $83,000.
Historically, crypto assets like Bit typically correlate with tech stock trends, especially when investor sentiment shifts towards higher-risk assets. When tech stocks perform well, investors are more confident in purchasing cryptocurrencies. Therefore, Trump's tariff exemption policy dispersed the cloud over the tech industry, indirectly alleviating crypto market pressure.
Additionally, Santiment noted that semiconductor and computer component exemptions can be seen as beneficial for the crypto ecosystem long-term. These components are crucial for crypto mining, blockchain infrastructure construction, and AI-based crypto tool development. Uninterrupted and reasonably priced production and supply will ensure crypto industry pillars continue operating, whether in mining or development.
This means crypto exchanges, wallet providers, and blockchain solution tech startups can operate more smoothly.
Although Trump's trade policy remains complex and unpredictable, Santiment believes the specific tech equipment exemption provides a clear policy direction and relieves market pressure in the short term. Investors are now more confident that consumer electronics inflation will be avoided, and businesses won't be forced to raise prices or cut innovation. This doesn't mean the end of tariff concerns, but it does alleviate one of the crypto industry's major worries.
Santiment concluded that a moderate bullish response in the crypto market has been observed. Monday's stock market should also rise, driving Bit and Altcoins further up. However, after the initial reaction, the market will become more interesting, and public FOMO sentiment might kill any upward movement.
