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Crypto markets rebound after Trump pauses tariffs on Canada and Mexico

Crypto markets rebound after Trump pauses tariffs on Canada and Mexico

Grafa2025/02/04 22:50
By: Liezl Gambe
BTC-0.26%ETH+2.07%

Crypto markets experienced a significant rebound after U.S. President Donald Trump announced a temporary hold on proposed tariffs targeting Canada and Mexico.

On February 3, Canadian Prime Minister Justin Trudeau revealed that following a phone call with Trump, the 25% tariffs would be paused for at least 30 days as both countries work on enhanced border security measures.

Trudeau stated that Canada would implement a $1.3 billion border plan, which includes appointing a Fentanyl czar and reinforcing the U.S.-Canada border.

Similarly, Mexican President Claudia Sheinbaum confirmed that tariffs would also be paused for one month, with both nations focusing on security and trade agreements.

Despite these positive developments, Trump indicated in an interview that no final agreement had been reached regarding tariffs on Mexico, leaving the possibility of their implementation open.

The initial announcement of tariffs on February 1 had sent shockwaves through the crypto market, causing Bitcoin (CRYPTO:BTC) to plummet to approximately $91,200 and Ethereum (CRYPTO:ETH) to drop to about $2,460.

However, following the tariff pause, Bitcoin surged back over the $100,000 mark, trading around $101,000, while Ethereum climbed to approximately $2,800.

The Crypto Fear Greed Index also reflected improved sentiment, rising to a score of 72, indicating a shift toward greed after previously being in fear territory.

The broader cryptocurrency market capitalisation has increased significantly as traders reacted positively to the tariff developments.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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