Bitcoin and other major cryptocurrencies rebounded on Tuesday as markets cheered U.S. President Donald Trump's decision to postpone new tariffs on Canada and Mexico, while dip buyers also pushed prices higher.
Bitcoin rose 5.6% to $99,327.5 by 01:05 ET (06:05 GMT).
Following the announcement of the tariff delay, Bitcoin's price rose above $100,000 on Monday evening.
Trump’s tariff delays alleviate liquidity concerns
The initial announcement of a 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods had triggered a broad selloff across risk assets, with Bitcoin and other digital currencies seeing sharp declines as investors sought to preserve cash.
However, overnight Trump agreed to postpone the tariffs on Mexico and Canada by 30 days.
Bitcoin had dropped to as low as $91,695.8 on Monday, while Ethereum had fallen over 20% to $2,261.27.
Ethereum rose 7.6% to $2,704.1 on Tuesday.
Cryptocurrencies often react to macroeconomic uncertainties, with traders seeking liquidity during times of market stress.
The 24/7 nature of crypto trading makes it a readily available asset class for such liquidity needs, especially during weekends when traditional markets are closed.
With the immediate threat of trade disruptions reduced, traders have resumed buying, helping stabilize the crypto market.
Despite the recent recovery, analysts caution that the cryptocurrency market remains vulnerable to ongoing geopolitical developments.
If tariffs on China proceed as planned or if new trade restrictions emerge, the risk of slower global growth and reduced liquidity could weigh on cryptocurrencies in the coming months.
Crypto price today: most altcoins jump as dip buyers emerge
Most altcoins climbed back on Tuesday after most dropping around 20% in the previous session.
World no.3 crypto XRP surged 13% to $2.5897.
Solana jumped 5.1%, and Polygon climbed 7.8%, while Cardano advanced 10.4%.
Among meme tokens, Dogecoin soared 11.4%, while President’s meme coin $TRUMP was 1.3% weaker at $17.603 after reaching a record low of $16.349 on Monday.
