The crypto market has made a strong comeback after last week’s brutal sell-off triggered by Trump’s tariff announcement on Canada, Mexico, and China. A temporary pause on trade restrictions for Canada and Mexico has restored investor confidence, helping Bitcoin and Ethereum regain lost ground.
Bitcoin & Ethereum Lead the Recovery
After tumbling to a low of $91,200 on Feb. 3, Bitcoin (BTC) rebounded 7% in the last 24 hours, now trading at $101,000. Despite the surge, it remains down 2% for the week.
Ethereum (ETH), which saw a sharper drop to $2,460, has bounced back nearly 10% to $2,800, though it’s still 12% lower than last week.
Market Cap Soars: The overall crypto market cap surged 8.5% in a single day, reaching $3.43 trillion, according to CoinGecko.
Sentiment Shift: The Crypto Fear & Greed Index jumped from 44 (Fear) to 72 (Greed), signaling renewed optimism.
What Sparked the Rebound?
The sell-off started when Trump’s tariffs hit China (10%), Canada, and Mexico (25%), causing widespread panic. Diplomatic talks quickly followed. Canada secured a 30-day delay, working on a $1.3B border security deal, while Mexico also negotiated a temporary hold. Despite the pause, Trump warned that tariffs could still take effect if long-term agreements aren’t reached.
What’s Next for Crypto?
While this short-term relief is fueling a rally, uncertainty still looms. If trade tensions resurface or a full-scale trade war unfolds, markets could take another hit.
Traders should keep an eye on Trump’s next moves, global market reactions, and upcoming AI developments—as last week’s crypto dip was also impacted by China’s DeepSeek AI launch, shaking global tech stocks.
For now, the market is breathing easier, but as always in crypto—expect the unexpected.
