The crypto market is slowly showing signs of recovery after experiencing significant volatility. Market prices fell because investors panicked about the US trade tariffs.
President Donald Trump agreed to delay Canada and Mexico’s tariffs for at least thirty days while both nations negotiate terms. So, what exactly happened, and why does it matter for crypto?
Why Trump Put Tariffs on Hold
Trump had planned to slap a 25% tariff on Canadian and Mexican goods. But after speaking with Canadian Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum, he decided to hit the brakes—at least for now.
During his campaign, Trudeau promised improved border security between Canada and the US as well as new anti-Fentanyl measures and drug cartel suppression initiatives.
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
Sheinbaum met with Trump to improve Mexico and US border security while negotiating trade issues between the two countries.
Sostuvimos una buena conversación con el presidente Trump con mucho respeto a nuestra relación y la soberanía; llegamos a una serie de acuerdos:
1.México reforzará la frontera norte con 10 mil elementos de la Guardia Nacional de forma inmediata, para evitar el tráfico de drogas…
— Claudia Sheinbaum Pardo (@Claudiashein) February 3, 2025
Although the pause serves a short-term purpose, the market reacts positively. It also displays caution because Trump informed Bloomberg TV that tariffs remain an option despite the temporary delay.
Crypto Market Bounces Back
Before the tariff delay, the crypto market took a huge hit. Bitcoin’s value slipped to under $92,000, while Ethereum’s value decreased to less than $2,500. Positive shifts are currently reshaping the current situation. Following its recent price dip:
- The value of Bitcoin reached more than $101,000 during this period.
- The Ethereum network price restored its previous position at $2,880 after showing promising recovery trends.
- Market sentiment has shifted toward optimism because the Crypto Fear & Greed Index reached 72/100 points, marking the start of “greed” status.
Analysts believe this tariff delay is key to restoring market stability.
Source: Alternative.me
Experts Predictions
Some experts think this could start a new bull run for crypto. Pav Hundal, an analyst at Swyftx, believes this pause on tariffs is making investors feel more optimistic. If the threat of tariffs disappears, crypto could hit new all-time highs.
Sean Dawson from Derive.xyz pointed out that Trump’s recent executive order to create a sovereign wealth fund could be bullish for crypto since Commerce Secretary nominee Howard Lutnick supports digital assets.
BULLISH: Senator Lummis posted to X after Trump’s latest EO signing to hint that the sovereign wealth fund could be used to buy Bitcoin. pic.twitter.com/Aa6NMcSSVX
— Cointelegraph (@Cointelegraph) February 4, 2025
Chris Chung, who founded Titan, a Solana swap platform, believes market participants exaggerated their reaction to the tariff announcement. According to him, crypto transactions are not taxed, thus creating only limited direct consequences.
What’s Next for Crypto?
While the crypto market has rebounded, investors are watching Trump’s next move. If the tariff risk weakens, Bitcoin and altcoins may attain fresh highs. According to the existing prediction, delivering his planned tariffs could trigger fresh market volatility.
End users agree that crypto remains one of the most essential elements driving economic activity. As traditional markets deal with trade wars and inflation, more people might turn to Bitcoin and other digital assets.
President Trump says the US and Mexico have not agreed on tariffs and they could still go into effect. He says Mexico agreed to send 10,000 National Guard officers to guard the border and stem the flow of fentanyl. He says talks with Canada are ongoing https://t.co/wALUHcJRMC pic.twitter.com/mRPKp4PqIJ
— Bloomberg TV (@BloombergTV) February 3, 2025
Conclusion
This week, the crypto market experienced extensive volatility yet proved its strength through a market recovery. Investors feel more optimistic since the tariff delay brought fast market price rebounds. Crypto will continue whether Trump maintains his current stance or modifies it.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Crypto Rebounds as Trump Delays Tariffs appeared first on Altcoin Buzz.
This articles is written by : Fady Askharoun Samy Askharoun
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