US President Donald Trump has agreed to put a temporary hold on proposed tariffs aimed at Canada and Mexico, sparking a sharp rebound in crypto markets. The pause will last for at least 30 days as the two countries continue negotiations.
Canadian Prime Minister Justin Trudeau announced the move in a statement, saying that Canada would enhance coordination with its American partners by implementing a $1.3 billion border plan. This includes appointing a Fentanyl czar and listing cartels as terrorists to reinforce the US-Canada border.
Mexico’s President Claudia Sheinbaum also confirmed the pause, stating that agreements had been reached between the two leaders on security and trade fronts. The tariffs will be paused for one month from now.
The news has led to significant gains in Bitcoin and altcoins, with prices crossing the $100,000 threshold for Bitcoin and reaching a high of $2,880 for Ether. The Crypto Fear & Greed Index has also seen an uptick, crossing over into greed territory with a score of 72 out of 100.
Experts attribute the rebound to the reduced uncertainty surrounding tariffs. Pav Hundal, lead analyst at Swyftx, says that investors are now between relieved and cheerful, leading to a “complete recovery in many digital assets.” Sean Dawson from Derive.xyz believes that Trump’s Executive Order establishing a sovereign wealth fund could signal bullish sentiment for the digital asset space.
Chris Chung from Titan notes that while tariffs have a significant impact on traditional markets, they may actually attract more inflows into digital assets in the long term. The pause has led to a surge in crypto prices, with many analysts expecting new all-time highs in Bitcoin and other altcoins.
Source: https://cointelegraph.com/news/crypto-markets-rebound-trump-canada-mexico-tarriffs-on-hold