The crypto market surged, recovering from recent losses after reports emerged that former U.S. President Donald Trump’s proposed tariffs on Canada and Mexico were put on hold. Investors reacted positively to the news, as fears of a potential trade war eased, restoring confidence in risk assets, including cryptocurrencies. Bitcoin and major altcoins saw a sharp uptick in price, with market sentiment shifting toward optimism.
Bitcoin climbed back above key support levels, while Ethereum, Solana, and other major tokens posted strong gains. Analysts suggest that easing geopolitical tensions contributed to the rally, as crypto markets often react to macroeconomic stability and policy clarity. The reversal in trade policy uncertainty also boosted equities and commodities, further fueling investor confidence in digital assets.
Market participants had been on edge amid concerns that new tariffs could disrupt North American trade relations, impacting broader financial markets. With those measures now on hold, traders have returned to riskier assets, leading to increased trading volume and liquidations of short positions. The rebound highlights crypto’s growing correlation with traditional financial markets, particularly in response to major economic policy shifts.
As investors watch for further policy developments from Trump’s camp, the crypto market remains volatile but increasingly responsive to global economic news. While uncertainty still looms over future trade decisions, the current pause on tariffs has provided temporary relief for traders, allowing the crypto market to regain momentum.
