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Cryptocurrency prices have seen a notable recovery in the past few days, supported by Donald Trump's decision to suspend tariffs on most countries. The price of Bitcoin has risen to nearly $85,000, while popular cryptocurrencies such as Flare, Fartcoin, Ethereum, and Baby have surged by multiples. This cryptocurrency price prediction explores the reasons behind Trump's reversal on suspending tariffs for 90 days, which could lead to a decline.
Stock and cryptocurrency prices rose after Trump suspended tariffs.
Stock and cryptocurrency markets rebounded last week after Trump decided to suspend tariffs imposed on more than 70 countries for 90 days. This action bolstered confidence in his flexibility and willingness to negotiate with cooperative countries such as Japan and South Korea.
At that time, the U.S. administration announced that it would exempt popular products, such as smartphones and semiconductors, from tariffs. The reason is that imposing a 145% tariff on Chinese-made iPhones would make them too expensive for Americans. It would also make it easier for people to compare prices before and after the tariffs were imposed.
This decision contributed to raising the prices of most technology stocks, as the Nasdaq 100 index jumped by more than 310 points. Apple shares surged by 3.8%, while Microsoft shares rose by more than 1.5%. Other tech stocks like NVIDIA and AMD also saw significant increases.
The continuous rise in technology stocks will be good for the cryptocurrency market due to their correlation. This explains the recovery in the prices of Bitcoin and other cryptocurrencies, such as Vartcoin and Solana, in the past few days.