The crypto market rebounded after US President Donald Trump reached an agreement to suspend tariffs with Canada and Mexico.
As reported, on February 3, 2025, President Donald Trump signed an executive order imposing a 25% tax on imported goods from Mexico and Canada, and a 10% tax on Canadian energy and oil as well as goods from China. This move caused the entire crypto market capitalization to plummet 11.9% to only $3.16 trillion, clearly reflecting the panic of many investors.
In the early morning of February 4, 2025, US President Donald Trump and Mexican President Claudia Sheinbaum had a phone call and agreed to suspend the tariffs for 1 month. In addition, Mexico pledged to deploy 10,000 troops to the border to control fentanyl trafficking and prevent illegal immigration into the US.
Canadian Prime Minister Justin Trudeau also spoke with President Trump and confirmed that Canada will cooperate with the US by implementing a $1.3 billion border plan. The plan includes appointing a "Fentanyl Czar" to deal with the drug crisis, designating drug cartels as terrorists, and strengthening US-Canada border security.
Additionally, President Trump signed an Executive Order to establish the first US sovereign wealth fund to invest in financial assets such as stocks, bonds, real estate, precious metals, and other financial instruments.
Although Bitcoin was not mentioned directly, many experts believe that this fund could pave the way for the US government to enter the BTC market. With the 30-day tariff suspension and the launch of the first sovereign wealth fund in the United States, the crypto market immediately responded positively, quickly recovering from a "bloody" Monday.
Bitcoin (BTC) price has increased by more than 6.3% in the past 24 hours, surpassing the $100,000 mark and is currently trading around $101,000, after bottoming out at $92,000 on February 3.
Ethereum (ETH) price has also recovered from its low of $2,368, currently trading around $2,800, up 14.5% in the past 24 hours.
ETH's recovery was initially slow, but quickly skyrocketed after Eric Trump, Donald Trump's second son, posted on X: "In my opinion, this is a great time to buy ETH."
However, the Bread account (@0xBreadguy) quickly mocked Eric Trump's post, posting a photo showing that the Trump family's DeFi project, World Liberty Financial, had just transferred more than $175 million in ETH to Coinbase. This raised doubts about the real motive behind Eric Trump's call to buy ETH.
Solana (SOL) price also recorded an impressive recovery of 12.6% in 24 hours, returning to $216. Most notably, SUI and XRP, these two tokens exploded strongly with increases of 38% and 36% respectively compared to the low of the past day. SUI is currently trading around $3.61, while XRP reached $2.75.
While many major coins quickly regained their position, some emerging coins such as TAO, JUP, ENA have also "weathered the storm" successfully with impressive growth in the past day.
Not only the crypto market, some stocks of blockchain and cryptocurrency-related companies also recorded a recovery with Exodus Movement and Iris Energy both returning to green. The sell-off on February 3 caused more than $2.2 billion in liquidations in the crypto derivatives market, becoming one of the most serious liquidations in the history of the industry.
However, according to Bybit CEO Ben Zhou, the actual number may be higher due to API restrictions from exchanges, thus making the data not fully reflected. According to data from CoinGlass, the derivatives market only recorded an additional $613 million in liquidations in the past 24 hours.
