Tariffs’ aid sparks crypto market rebound—Bitcoin, Ethereum rise

Tariffs’ aid sparks crypto market rebound—Bitcoin, Ethereum rise

After a brutal sell-off, Bitcoin and Ethereum are again in motion. With Trump pausing tariffs on Canada and Mexico, optimism is creeping again into the market—will the rally final?

The crypto market has staged a powerful rebound after a brutal sell-off triggered by the U.S. President Donald Trump’s tariff announcement on Feb. 1. 

Bitcoin (BTC), Ethereum (ETH), and the broader digital asset market noticed heavy losses after the U.S. moved to impose tariffs on Canada, Mexico, and China, however a brief pause on commerce restrictions for Canada and Mexico has since sparked renewed optimism.

BTC, which plunged to a low of $91,200 on Feb. 3 following Trump’s tariff declaration, has recovered sharply, buying and selling round $101,000 as of Feb. 4—a 7% achieve within the final 24 hours, although nonetheless down practically 2% on a weekly foundation. 

ETH, which suffered a fair deeper plunge to $2,460, has bounced again extra aggressively, rising practically 10% within the final 24 hours to $2,800, although it stays 12% decrease than per week in the past.

The broader crypto market has adopted go well with, with complete market capitalization surging 8.5% previously day to achieve $3.43 trillion, based on CoinGecko. 

Investor sentiment has additionally turned optimistic, because the Crypto Worry & Greed Index has climbed again to 72—indicating a shift into “greed”—after hitting a fear-driven low of 44 through the crash.

Tariff fears and market jitters

The sell-off started on Feb. 3, when Trump’s order launched new tariffs, sending shockwaves throughout monetary markets, together with crypto. 

China was hit with a ten% tariff, whereas Canada and Mexico confronted steeper 25% duties. The transfer triggered instant uncertainty, inflicting threat property—together with cryptocurrencies—to tumble.

Nevertheless, inside hours, diplomatic efforts have been already in movement. 

Canadian Prime Minister Justin Trudeau introduced on X that he had spoken with Trump and secured a brief 30-day pause on the tariffs whereas each nations labored on a broader border safety settlement. 

The deal features a $1.3 billion safety plan, appointing a Fentanyl czar, and reinforcing the U.S.-Canada border. 

Mexico adopted the same path, with President Claudia Sheinbaum confirming that the tariffs can be placed on maintain for a month as each nations labored towards strengthening their land border agreements.

Regardless of these short-term resolutions, uncertainty stays. Trump, in a Feb. 3 interview with Bloomberg TV, made it clear that no last settlement had been reached and that tariffs on Mexico may nonetheless take impact. 

In the meantime, China, the one nation not included within the pause, is reportedly ready to barter, based on a Feb. 3 Wall Avenue Journal report.

AI, world markets, and crypto’s volatility

Whereas the newest tariff battle sparked the current market turbulence, crypto costs have been already on shaky floor final week on account of one other improvement. 

The discharge of a brand new synthetic intelligence mannequin by China-based DeepSeek raised considerations concerning the rising capabilities of non-U.S. AI corporations, impacting world tech markets. 

This, mixed with the tariff fears, led to heavy liquidations in crypto earlier than the rebound took maintain.

Now, as merchants react to the newest developments, markets stay on edge. Whereas the pause in tariffs has given crypto some respiration room, the state of affairs stays fluid. A protracted commerce battle or further geopolitical shifts may simply reignite promoting strain.

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bitcoin
Bitcoin (BTC) $ 97,146.03 0.26%
ethereum
Ethereum (ETH) $ 2,633.86 0.79%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.39 2.61%
solana
Solana (SOL) $ 202.80 0.74%
bnb
BNB (BNB) $ 607.34 1.20%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.249753 2.32%
staked-ether
Lido Staked Ether (STETH) $ 2,631.78 0.73%
cardano
Cardano (ADA) $ 0.690248 1.50%
tron
TRON (TRX) $ 0.232336 0.89%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 96,686.91 0.10%
chainlink
Chainlink (LINK) $ 18.51 0.23%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,139.59 0.79%
avalanche-2
Avalanche (AVAX) $ 25.09 0.19%
sui
Sui (SUI) $ 3.10 0.83%
stellar
Stellar (XLM) $ 0.312482 5.60%
the-open-network
Toncoin (TON) $ 3.83 1.00%
shiba-inu
Shiba Inu (SHIB) $ 0.000016 2.31%
leo-token
LEO Token (LEO) $ 9.89 0.28%
hedera-hashgraph
Hedera (HBAR) $ 0.235812 1.09%
litecoin
Litecoin (LTC) $ 112.94 6.32%
usds
USDS (USDS) $ 1.00 0.31%
hyperliquid
Hyperliquid (HYPE) $ 23.31 0.58%
bitget-token
Bitget Token (BGB) $ 6.40 0.40%
weth
WETH (WETH) $ 2,633.42 0.78%
polkadot
Polkadot (DOT) $ 4.79 0.95%
bitcoin-cash
Bitcoin Cash (BCH) $ 327.04 0.51%
ethena-usde
Ethena USDe (USDE) $ 0.999545 0.10%
mantra-dao
MANTRA (OM) $ 6.12 0.71%
uniswap
Uniswap (UNI) $ 9.11 0.95%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,790.06 0.70%
ondo-finance
Ondo (ONDO) $ 1.32 2.05%
monero
Monero (XMR) $ 223.94 4.64%
pepe
Pepe (PEPE) $ 0.00001 0.18%
whitebit
WhiteBIT Coin (WBT) $ 27.47 0.92%
near
NEAR Protocol (NEAR) $ 3.18 5.83%
aave
Aave (AAVE) $ 246.08 0.32%
aptos
Aptos (APT) $ 6.07 3.56%
dai
Dai (DAI) $ 1.00 0.01%
mantle
Mantle (MNT) $ 1.02 2.20%
internet-computer
Internet Computer (ICP) $ 7.03 0.12%
susds
sUSDS (SUSDS) $ 1.03 0.16%
bittensor
Bittensor (TAO) $ 383.96 6.35%
official-trump
Official Trump (TRUMP) $ 15.61 10.63%
ethereum-classic
Ethereum Classic (ETC) $ 20.30 0.41%
okb
OKB (OKB) $ 47.93 1.44%
gatechain-token
Gate (GT) $ 21.56 0.29%
vechain
VeChain (VET) $ 0.032505 1.37%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.306203 1.57%
crypto-com-chain
Cronos (CRO) $ 0.093083 1.98%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 96,933.97 0.04%
algorand
Algorand (ALGO) $ 0.282629 1.41%
kaspa
Kaspa (KAS) $ 0.08755 0.63%
render-token
Render (RENDER) $ 4.34 0.42%
tokenize-xchange
Tokenize Xchange (TKX) $ 28.02 1.06%
jupiter-exchange-solana
Jupiter (JUP) $ 0.829359 2.20%
filecoin
Filecoin (FIL) $ 3.33 0.34%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.791349 4.28%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.25%
cosmos
Cosmos Hub (ATOM) $ 4.66 0.03%
arbitrum
Arbitrum (ARB) $ 0.45687 0.07%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 96,860.95 0.54%
fasttoken
Fasttoken (FTN) $ 3.93 0.04%
celestia
Celestia (TIA) $ 3.14 1.63%
binance-staked-sol
Binance Staked SOL (BNSOL) $ 209.29 1.02%
binance-peg-weth
Binance-Peg WETH (WETH) $ 2,629.59 1.00%
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 2,727.83 0.69%
ethena
Ethena (ENA) $ 0.481136 5.62%
solv-btc
Solv Protocol SolvBTC (SOLVBTC) $ 96,769.93 0.06%
kucoin-shares
KuCoin (KCS) $ 12.04 1.15%
optimism
Optimism (OP) $ 1.09 1.67%
injective-protocol
Injective (INJ) $ 14.61 5.21%
immutable-x
Immutable (IMX) $ 0.813695 1.11%
xdce-crowd-sale
XDC Network (XDC) $ 0.090322 2.84%
raydium
Raydium (RAY) $ 4.80 6.19%
blockstack
Stacks (STX) $ 0.922398 2.29%
lido-dao
Lido DAO (LDO) $ 1.52 1.43%
theta-token
Theta Network (THETA) $ 1.35 0.55%
bonk
Bonk (BONK) $ 0.000017 3.87%
rocket-pool-eth
Rocket Pool ETH (RETH) $ 2,956.66 0.59%
nexo
NEXO (NEXO) $ 1.31 0.50%
sonic-3
Sonic (prev. FTM) (S) $ 0.408354 0.79%
quant-network
Quant (QNT) $ 87.81 0.12%
the-graph
The Graph (GRT) $ 0.133643 0.20%
mantle-staked-ether
Mantle Staked Ether (METH) $ 2,783.02 0.69%
movement
Movement (MOVE) $ 0.523061 4.03%
worldcoin-wld
Worldcoin (WLD) $ 1.24 1.97%
flare-networks
Flare (FLR) $ 0.020862 5.97%
usual-usd
Usual USD (USD0) $ 0.997432 0.01%
dexe
DeXe (DEXE) $ 19.26 7.75%
jasmycoin
JasmyCoin (JASMY) $ 0.022502 0.02%
solv-protocol-solvbtc-bbn
Solv Protocol SolvBTC.BBN (SOLVBTC.BB) $ 95,273.53 0.88%
msol
Marinade Staked SOL (MSOL) $ 256.36 0.89%
sei-network
Sei (SEI) $ 0.228027 0.20%
gala
GALA (GALA) $ 0.022415 1.66%
eos
EOS (EOS) $ 0.623671 1.82%
the-sandbox
The Sandbox (SAND) $ 0.382486 1.53%
tezos
Tezos (XTZ) $ 0.882624 2.18%
floki
FLOKI (FLOKI) $ 0.000094 0.87%
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