The crypto market is showing signs of recovery after recent volatility caused by investor panic over US trade tariffs.
Why Trump Put Tariffs on Hold
President Donald Trump agreed to delay tariffs for Canada and Mexico for at least thirty days after talks with Canadian Prime Minister Justin Trudeau and Mexico's President Claudia Sheinbaum. Trudeau committed to enhancing border security and tackling fentanyl and drug cartels. Sheinbaum confirmed immediate reinforcement of Mexico's northern border with 10,000 National Guard members to curb drug trafficking.
Crypto Market Bounces Back
Following the tariff delay announcement, cryptocurrencies began to recover. Bitcoin's price exceeded $101,000, while Ethereum reached $2,880. Market optimism strengthened, reflected in the Crypto Fear & Greed Index rising to 72/100, signaling the start of 'greed'. Analysts attribute the recovery to the tariff delay.
Experts Predictions
Experts believe the current situation could spark a new crypto bull run. Pav Hundal from Swyftx suggests that the tariff delay has boosted investor confidence. If the tariff threat is removed, the market might hit new highs. Sean Dawson from Derive.xyz noted that Trump's order to establish a sovereign wealth fund could bolster crypto, especially if it invests in Bitcoin.
This week, the crypto market experienced significant volatility but has shown resilience in recovery. The tariff delay has boosted investor optimism, and market observers continue to watch Trump's next steps.
