Most cryptocurrencies rose on Monday as the risk appetite improved in the markets following new remarks by US President Donald Trump.

Concerns about the trade war receded after Trump exempted some tech imports from reciprocal tariffs.

In yet another escalation to the devastating US-China trade war, Beijing raised tariffs on all US goods from 84% to 125%.

It’s in response to US President Donald Trump’s 145% tariffs on US goods, which were confirmed yesterday.

The latest escalation comes after a long series of reciprocal measures between both sides starting January 2018, when the US imposed tariffs on Chinese goods and accused China of unfair trade practices. 

China asserted it will “fight till the end” and warned Trump that any escalation will be faced with similar responses.

China said it won’t respond to any more tariff hikes from the US as it would be meaningless after this point, with American products already losing their viability in the Chinese market.

The corporate earnings season officially started for the first quarter of the year, starting with banking results.

Ethereum

On trading, ethereum rose 1.9% on Coinmarketcap as of 20:12 GMT to $1635.

US stock indices rose on Monday as concerns about the trade war receded after President Donald Trump exempted some tech imports from reciprocal tariffs.

The corporate earnings season officially started for the first quarter of the year, starting with banking results.

On trading, Dow Jones rose 1.3% as of 14:51 GMT, or 534 points to 40,749 points, while S&P 500 rallied 1.7%, or 90 points to 5454 points, as NASDAQ gave up 1.9%, or 322 points to 17,046 points.

Bitcoin gained ground on Monday and resumed its gains near two-week highs, thus readying to surpass the $85,000 barrier on positive sentiment following new purchases by major corporations. 

Japan’s MetaPlanet raised its bitcoin holdings to a new record high, boosting institutional confidence in bitcoin and underpinning the crypto market.

The Price

Bitcoin rose 2.1% today at Bitstamp to $85,496, with a session-low at $83,680.

On Sunday, bitcoin lost 1.8%, the first loss in three days on profit-taking away from a two-week high at $86,084.

Bitcoin surged 7% last week, the first weekly profit in three weeks on short-covering.

Crypto Market Value 

The market value of cryptocurrencies rose $55 billion on Monday to a total of $2792 trillion.

MetaPlanet 

Japan’s MetaPlanet acquired 319 additional bitcoin units in April, worth about $26.33 million.

Thus total bitcoin holdings for the company are now up to a record 4525 units, worth $377.64 million, averaging $83,456 per unit.

It’s a similar strategy to US company Microstrategy, which continued to expand its bitcoin holdings in recent months as well.

US Rates

Recent US data showed inflation slowed down more than expected in March, reducing the pressure on Fed’s policymakers.

Following the data, the odds of a Fed 0.25% rate cut in May rose from 15% to 25%, while the odds of such a cut in June rallied to 85%.

Now traders await a batch of remarks by several Fed officials today, including Deputy Chair Christopher Waller to gather more clues.

The US dollar fell in European trade on Monday against a basket of major rivals, on track for the third loss in a row, almost touching three-year lows amid concerns about US recession to President Donald Trump’s aggressive tariffs. 

Now investors await important remarks by Fed officials later today, looking for clues on the future path of US interest rates.

The Index

The dollar index fell 0.6% today to 99.21, with a session-high at 100.07.

On Friday, the index slid 1.15%, plumbing three-year lows at 99.01 after forecast-missing producer prices data.

The index lost 3% last week, the third weekly loss in a row amid a selloff wave as investors worry about a potential US recession to the trade war with China.

US Assets

Confidence in the US economy tumbled, prompting investors to dump US assets in favor of other safe havens such as the Swiss franc and gold.

Recent US data showed inflation slowed down more than expected in March, reducing the pressure on Fed’s policymakers.

Following the data, the odds of a Fed 0.25% rate cut in May rose from 15% to 25%, while the odds of such a cut in June rallied to 85%.

Now traders await a batch of remarks by several Fed officials today, including Deputy Chair Christopher Waller to gather more clues.