Bitcoin Stable Above $84,000 Amid Tariff Uncertainty

Bitcoin (BTC) remained stable as East Asian markets opened for the week, trading above $84,000. This stability came amidst mixed messages from the White House regarding tariffs on semiconductors and technology components. Over the weekend, Commerce Secretary Howard Lutnick indicated that the exemption of items like smartphones, computers, and the semiconductors that power them from tariffs was a temporary measure. President Trump later confirmed this in a press briefing, stating that the tariff rate would be announced the following week, but there would be some "flexibility" on the matter.

Market reactions were mixed. Initially, there was a material rebound as popular consumer electronics categories were exempted from the 125% tariffs on China. However, when Trump mentioned that these items would simply be moved to another bucket of tariffs rather than being exempted altogether, the market held its gains amidst rumors that business leaders had convinced the Trump administration to peel back some of their highest tariffs. Analysts believe that while there will be challenges in shifting global supply chains away from China overnight, low-end, low-margin manufacturing is likely to shift to other Asian countries after they broker trade deals. This rally is seen as temporary, with markets expected to remain volatile in the short term.

Meanwhile, China has announced its own tariffs on semiconductors, imposing a 34% tariff on U.S.-origin chips. However, China counts the origin of the chip as where it was fabricated, not designed. As a result, the majority of U.S. chip companies, such as AMD and Nvidia, which rely on Taiwan Semiconductor Manufacturing Company (TSMC) for fabrication, would be effectively exempt from these tariffs. Analysts in China acknowledge short-term disruptions from the semiconductor tariffs but view them as an opportunity to accelerate domestic innovation, localization, and supply-chain restructuring, ultimately benefiting China's semiconductor industry in the long run.

Within China, equity traders are waiting for the final tariff news to make their next move. Shanghai's SSE composite index is up 0.8%, while Shenzhen's tech-heavy SZSE is up 0.9%. Elsewhere in crypto, China Hong Kong's Bosera HashKey Ether exchange-traded fund (ETF) has been approved to offer staking services. This comes after the city's market regulator issued guidance on offering staking services in China Hong Kong.