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

After a brutal sale, Bitcoin and Ethereum are back in action. With Trump on break on prices in Canada and Mexico, optimism is reproduced on the market – the rally last?

The cryptography market staged a strong rebound after a brutal sale triggered By the price announcement of American president Donald Trump on February 1.

Bitcoin (BTC), Ethereum (Ethn), and the wider market of digital assets has experienced heavy losses after the United States has moved to impose prices in Canada, Mexico and China, but a temporary break on commercial restrictions for Canada and Mexico has since aroused a renewal of optimism.

BTC, which plunged to a hollow of $ 91,200 on February 3 after Trump’s pricing declaration, was strongly recovered, merchant about $ 101,000 in February 4, a gain of 7% in the last 24 hours, that still down almost 2% on a weekly weekly weekly.

ETH, which has undergone an even deeper dive at $ 2,460, has rebounded more aggressively, increasing by almost 10% in the last 24 hours to $ 2,800, although there are 12% lower than there has one week.

The wider crypto market has followed suit, total market capitalization increasing by 8.5% in the last day to reach 3.43 billions of dollars, according to Co Ringecko.

The feeling of investors has also become positive, because the crypto fear & Greed index has climbed back at 72 – indicating a transfer in “greed” – after struck A hollow of the fear of 44 during the accident.

Prices and dips on the market

The sale started on February 3, when Trump’s order presented New prices, sending shock waves on the financial markets, including the crypto.

China was struck by a tariff of 10%, while Canada and Mexico faced higher tasks of 25%. The move sparked immediate uncertainty, causing risk assets – including cryptocurrencies – to tumble.

However, in a few hours, diplomatic efforts were already in motion.

Canadian Prime Minister Justin Trudeau announced that he had spoken with Trump and obtained a temporary break of 30 days on prices while the two countries worked on a wider border security agreement.

The agreement includes a 1.3 billion dollars security plan, appoint a fentanyl tsar and strengthen the United States border.

Mexico followed a similar path, President Claudia Sheinbaum confirming that the prices would be suspended for a month while the two nations worked to strengthen their land border agreements.

Despite these temporary resolutions, uncertainty remains. Trump, in an interview on February 3 with Bloomberg TV, clearly said that no final agreement had been concluded and that the prices on Mexico could still take effect.

Meanwhile, China, the only country not included in the break, is would have Prepared to negotiate, according to a February 3 report Wall Street Journal.

AI, global markets and volatility of cryptography

While the last price battle triggered the recent market turbulence, crypto prices were already on fragile land last week due to another development.

The release of a new model of artificial intelligence by Deepseek based in China has raised concern On the growing capacities of non-American companies, which has an impact on global technological markets.

This, combined with the pricing fears, led to liquidation in crypto before the rebound settled.

Now, as traders react to the latest developments, the markets remain on board. While the break in the prices gave the crypto a certain breathing room, the situation remains fluid. Prolonged trade war or additional geopolitical changes could easily rekindle sales pressure.