Bitcoin and crypto market sees recovery as Mexico and US agree to delay tariffs

Source Fxstreet
  • Bitcoin reclaimed the $100,000 level after Donald Trump and Mexico's President reached a tariff agreement.
  • Trump confirmed a deal with President Claudia Sheinbaum on pausing US-Mexico tariffs for one month.
  • Ethereum, XRP, Solana, Dogecoin, and other top crypto assets are up in the past few hours following the announcement by Mexico's president.
  • The recent crypto market crash and subsequent recovery following news of the trade tariffs reveal its rising correlation with the traditional stock market.

The crypto market saw a recovery as Mexico's President Claudia Sheinbaum reached an agreement with US President Donald Trump on Monday to pause the US-Mexico tariffs for one month. Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL) have all been up in the past few hours, recovering from steep declines experienced earlier in the day.

Crypto market rebounds as Trump and Mexico reach new tariff deal

Mexico’s president Claudia Sheinbaum struck a deal with President Trump to cease US-Mexico tariffs for one month. The deal involves the Mexican president deploying 10,000 National Guard troops to help secure the US-Mexico border.

President Trump confirmed the news, stating that both countries will continue negotiations spearheaded by government officials, including Secretary of the Treasury Scott Bessent and Secretary of State Marco Rubio.

Following the resolution, Bitcoin reclaimed the $100,000 key level. Ethereum, Solana, XRP and Dogecoin also witnessed gains in the past few hours, as bulls appear to be staging a comeback.

Top Crypto Assets

Top Crypto Assets. Source: CoinGecko

The recent recovery comes after a market-wide decline that wiped out over $2 billion from the crypto derivatives market on Monday following President Trump's new tariffs on Canada, Mexico and China.

The reaction from market participants sparked tension of a global trade war, which also saw the global crypto market briefly shed over $500 billion.

Traditional stock markets also witnessed a recovery in the past few hours, with the S&P 500 rising above 6,000 from an intraday low of 5,920.

This underscores the rising correlation between crypto assets like Bitcoin and the stock market.

A similar move occurred last week after Bitcoin's price dipped following the stock market decline sparked by China's artificial intelligence startup DeepSeek.

Additionally, Bitcoin and the crypto market have responded similarly to US economic data in the past year.

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver Price dives below $50.00 as the Dollar rallies Market expectations that the US and China will de-escalate trade tensions are boosting the US Dollar’s recovery and hurting precious metals.
Author  FXStreet
12 hours ago
Market expectations that the US and China will de-escalate trade tensions are boosting the US Dollar’s recovery and hurting precious metals.
placeholder
Japan's next finance minister could unsettle yen bearsThe dollar briefly fell to around 150.50 yen on a local media report that Katayama will get the job, before recouped losses to climb above 151 yen.
Author  FXStreet
12 hours ago
The dollar briefly fell to around 150.50 yen on a local media report that Katayama will get the job, before recouped losses to climb above 151 yen.
placeholder
Bitcoin Price Forecast: BTC falls below $108,000 amid economic uncertainty, ETF outflowsBitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
Author  FXStreet
13 hours ago
Bitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
placeholder
Forex Today: Markets remain focused on US-China, government shutdown newsEarly Tuesday, the USD Index clings to small gains above 98.50 and US stock index futures lose about 0.1% on the day.
Author  FXStreet
14 hours ago
Early Tuesday, the USD Index clings to small gains above 98.50 and US stock index futures lose about 0.1% on the day.
placeholder
BitMine and Strategy Capitalize on Market Weakness to Expand Crypto PortfoliosAfter the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
Author  Beincrypto
14 hours ago
After the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
goTop
quote