Crypto Prices Recover Following Temporary Tariff Pause

Crypto Markets Rebound After Tariff Pause Announcement

Crypto markets saw a sharp rebound after US President Donald Trump decided to pause proposed tariffs on Canada and Mexico. This temporary hold followed a phone call between Trump and Canadian Prime Minister Justin Trudeau. The decision brought relief to traders and investors who had been bracing for the impact of higher trade barriers.

In a statement on X, Trudeau confirmed that the 25% tariffs would be on hold for at least 30 days. Canada plans to strengthen coordination with the US through a $1.3 billion border plan. This includes appointing a Fentanyl czar, labeling cartels as terrorist organizations, and increasing security with helicopters and additional personnel at the US-Canada border.

Mexico also secured a one-month pause on tariffs. President Claudia Sheinbaum stated that the US and Mexico reached several agreements focused on security and trade. Both nations will start working on these issues immediately, with a commitment to reinforce their shared land border.

Uncertainty Remains with Trump’s Comments

Despite these announcements, Trump told Bloomberg TV that the US and Mexico haven’t finalized an agreement on tariffs. He indicated that tariffs could still take effect, adding some uncertainty to the situation.

While tariffs on Canada and Mexico are paused, the 10% tariff imposed on China remains active. According to the Wall Street Journal, China is prepared to negotiate. Sources suggest that China’s initial offer includes reviving the Phase 1 trade deal from 2020, which required Beijing to boost US exports by $200 billion over two years.

On the crypto-based prediction platform Polymarket, bettors give Trump a 24% chance of removing tariffs on Mexico before March. The odds for Canada’s tariff removal stand at 22%, while China’s chances are much lower at 9%.

Crypto prices had dropped sharply a day before the announcements, following Trump’s initial tariff threats. Estimates suggested around $10 billion in capital was liquidated from the markets. However, the latest updates from world leaders have reversed this trend.

Bitcoin and Ether Show Strong Recovery

CoinMarketCap data shows that Bitcoin has risen above $100,000, hitting $101,731 after falling to $92,000 the day before. Ether bounced back as well, rising from $2,451 to $2,880. This demonstrates the investor’s newfound faith in the cryptocurrency market.

The investor attitude indicator, the Crypto Fear & Greed Index, has changed dramatically. It scored 72 out of 100, crossing the line from fear to greed. This change reflects growing optimism among traders following the recent policy updates.

The post Crypto Prices Recover Following Temporary Tariff Pause appeared first on NFT Evening.

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