Rebound of Crypto Markets as Tariff Delay Eases Trade War Fears

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The crypto market have experienced a significant rebound following a temporary delay in United States on Canada and Mexico, which had initially ignited a sharp sell-off.

The total market cap soared by approximately 8.75%, reaching around $3.31 trillion as traders reacted positively to the tariff delay, reversing losses from the previous day.

Bitcoin has reclaimed the $100,000 mark and is pricing at about $101,000, after falling to a low of $92,000 due to tariff announcements. Ethereum also saw a notable recovery, climbing nearly 12% to approximately $2,809.

This resurgence reflects a wider recovery in risk assets, with the S&P 500 index similarly bouncing back after initial declines.

Several altcoins led the recovery with impressive gains; for instance, XRP surged by over 23%, while others like Cardano etc. posted gains exceeding 20%.

Following diplomatic discussions involving Canada's declaration of a significant security program and Mexico's pledge to strengthen border security, the tariff postponement was secured.

But since tariffs on China are still expected to go on as planned, there is still uncertainty, which suggests that market volatility will continue.

Analysts caution that while today's rebound is promising, the unpredictability of Trump's trade policies could lead to further market fluctuations. Traders are advised to monitor upcoming trade negotiations closely as these will likely influence market dynamics in the near term.

This rebound underscores the increasing sensitivity of crypto markets to macroeconomic factors and trade policies, marking a notable shift from their previously perceived independence from traditional financial markets.

Not financial advice.

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Posted Using INLEO