Bitcoin and other major cryptocurrencies rebounded on Tuesday as markets responded positively to U.S. President Donald Trump’s decision to delay new tariffs on Canada and Mexico, with dip buyers further driving prices higher.
Bitcoin climbed 5.6% to $99,327.5 by 01:05 ET (06:05 GMT), briefly surpassing $100,000 on Monday evening following the tariff delay announcement.
Trump’s decision helped ease liquidity concerns after the initial announcement of a 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods triggered a broad selloff in risk assets, including cryptocurrencies. Investors had sought to preserve cash, causing Bitcoin to drop to $91,695.8 and Ethereum to fall over 20% to $2,261.27 on Monday.
Overnight, Trump agreed to postpone the tariffs on Mexico and Canada by 30 days, prompting renewed buying. Ethereum rebounded 7.6% to $2,704.1 on Tuesday.
Cryptocurrencies often react to macroeconomic uncertainties, as their 24/7 trading availability makes them a convenient asset class for liquidity needs, especially during weekends when traditional markets are closed. With the immediate risk of trade disruptions reduced, traders resumed buying, stabilizing the crypto market.
Despite the recent recovery, analysts warn that ongoing geopolitical developments could keep the market volatile. If tariffs on China proceed or new trade restrictions emerge, concerns over slower global growth and reduced liquidity may weigh on cryptocurrencies in the coming months.
Crypto Market Today: Altcoins Rebound as Dip Buyers Return
Most altcoins bounced back on Tuesday after experiencing nearly 20% declines in the previous session.
XRP, the third-largest cryptocurrency, surged 13% to $2.5897. Solana gained 5.1%, Polygon climbed 7.8%, and Cardano advanced 10.4%.
Among meme tokens, Dogecoin soared 11.4%, while President Trump’s meme coin, $TRUMP, dipped 1.3% to $17.603 after hitting a record low of $16.349 on Monday.
