Crypto Markets Surge as Tariff Talks Ease for Canada and Mexico:
Tariff Delay Sparks Investor Optimism:
The cryptocurrency market saw a strong recovery after U.S. President Donald Trump decided to postpone trade levies on Canada and Mexico for 30 days, allowing room for further negotiations.
Canada and Mexico Secure Temporary Relief:
Canadian Prime Minister Justin Trudeau confirmed the deferment following a discussion with Trump. In return, Canada will roll out a $1.3 billion border initiative, featuring enhanced security measures and the appointment of a Fentanyl enforcement official.
Mexico’s President Claudia Sheinbaum acknowledged a parallel arrangement, stating that trade and security talks would commence promptly. However, Trump later mentioned on Bloomberg TV that tariffs could still be reinstated if discussions stall.
China Faces Continued Trade Pressures:
While North American neighbors gained a temporary respite, China’s 10% tariff remains unchanged. A Wall Street Journal report suggests Beijing is open to renegotiation, hinting at a revival of the 2020 Phase 1 trade agreement, which included a $200 billion U.S. import commitment.
Prediction platform Polymarket assigns a 24% likelihood of Mexico’s tariffs being lifted before March, 22% for Canada, and only a 9% chance for China.
Crypto Market Sees Strong Recovery:
After a steep sell-off on February 3, resulting in liquidations exceeding $10 billion, Bitcoin rebounded past the $100,000 mark, peaking at $101,731. Ether also recovered, climbing from $2,451 to $2,880.
The Crypto Fear & Greed Index, which was previously in “fear” mode, has surged to 72/100, indicating renewed investor confidence.