Cryptocurrency Market Reacts to Trade War Easing
On Monday, the cryptocurrency market experienced a notable upturn, with Bitcoin (BTC) rallying toward the impressive milestone of $100,000. This surge comes on the heels of eased concerns regarding a full-scale trade war, particularly following a significant agreement reached between Mexico and U.S. President Donald Trump.
In a statement made on Monday, Mexican President Claudia Sheinbaum announced that the government plans to deploy 10,000 troops along the U.S. border. This strategic move aims to combat illegal arms and drug trafficking more effectively. Additionally, Sheinbaum indicated that the implementation of tariffs would be postponed for a month, further contributing to the improved market sentiment.
The shift in sentiment was underscored by the prediction marketplace Polymarket, where the odds that Trump will eliminate blanket tariffs on Mexico before May surged to 80%, a significant increase from around 50% earlier in the day.
As a result of this positive sentiment, Bitcoin rebounded sharply from its intraday lows of $91,300 following an overnight capitulation, showing an increase of 1.5% during the day, according to TradingView data. Meanwhile, Ethereum’s Ether (ETH) experienced a rally, climbing above $2,700 after dipping near $2,000. Furthermore, Solana’s SOL also surged, trading above $200. Notably, XRP advanced by an impressive 40% from its lows, reaching around $2.5.
In the traditional stock market, U.S. equities narrowed earlier declines by approximately 50%. The Nasdaq is now down by only 1%, while the S&P 500 is lower by 0.75%.
