US Puts Tariffs on Hold, Crypto Markets Bounce Back

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US Government Puts Tariffs on Hold, Crypto Markets Bounce Back

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 04, 2025

Key Takeaways

The US government delayed tariffs on Canada and Mexico for 30 days, which boosted crypto market confidence;
Bitcoin hit $101,731, recovering from $92,000, while Ethereum climbed to $2,880 after dropping to $2,451;
Talks on trade and security continue, with no final agreement, and tariffs could still be imposed.

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US Government Puts Tariffs on Hold, Crypto Markets Bounce Back

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The cryptocurrency market saw a recovery after the US government decided to delay new tariffs on Canada and Mexico.

The decision came after discussions between leaders, with both countries agreeing to work on security and trade concerns.

Bitcoin BTC $90,574.25 climbed past the 100,000 mark, reaching $101,731 after dropping to $92,000 the day before. Ethereum ETH $3,091.23 also bounced back, rising to $2,880 after hitting a low of $2,451 on February 2.

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On February 3, Mexican President Claudia Sheinbaum announced on X that she and US President Donald Trump had reached agreements on key issues.

She stated, “Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now". Mexico has committed to strengthening border security as part of the discussions.

Canadian Prime Minister Justin Trudeau also confirmed the tariff delay after speaking with President Trump.

He said in a post on X that Canada will improve coordination with US officials and invest $1.3 billion in border security. This includes increasing personnel, adding helicopters, appointing a Fentanyl czar, and identifying certain criminal groups as terrorist organizations.

Despite these agreements, President Trump told Bloomberg TV on February 3 that discussions with Mexico are still ongoing. He stated that there is no final deal on tariffs yet, and they could still be introduced.

Meanwhile, Jeff Park, head of alpha strategies at BitWise, recently stated that US trade tariffs could benefit Bitcoin in the long run. How? Read the full story.