The cryptocurrency market experienced a sharp rebound after U.S. President Donald Trump agreed to temporarily halt proposed tariffs on Canada and Mexico as negotiations with the two countries continue.
After hitting a low of $92,000 on Sunday, Bitcoin surged past the $100,000 threshold to $101,731 on the next day.
In a statement on February 3, Canadian Prime Minister Justin Trudeau announced that following a phone call with President Trump, the 25% tariffs would be paused for at least 30 days, and both countries would work together on the issue.
“Canada is implementing our $1.3 billion border plan—reinforcing the border with new helicopters, technology, and personnel, enhancing coordination with our American partners, and increasing resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border,” Trudeau said.
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, list cartels as terrorists, ensure 24/7 monitoring of the border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering, and back it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together,” he added.
Reaching an agreement
Mexico’s tariffs have also been paused for a month. Mexican President Claudia Sheinbaum stated on February 3 that the two leaders had “reached a series of agreements,” with a similar commitment to reinforcing the shared land border.
“Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now,” Sheinbaum said.
In an interview with Bloomberg TV on February 3, President Trump mentioned that the U.S. and Mexico have not “agreed on tariffs yet,” and they could still go into effect.
What you should know
Following the announcements by world leaders, the crypto market has seen a steady climb.
- Bitcoin surged past the $100,000 threshold to $101,731 after hitting a low of $92,000 the previous day, according to CoinMarketCap.
- Ether, the second-largest cryptocurrency by market capitalization, also performed better compared to February 2. It reached a low of $2,451 but has since recovered to $2,880, as reported by CoinMarketCap.
The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, has also shown an uptick, moving into greed territory with a score of 72 out of 100 after previously being in fear.
