Quickly understand the history and background of various well-known coins

Bitcoin, Ethereum Surge as Trump Halts Canada Tariffs

Coin WorldMonday, Feb 3, 2025 9:27 pm ET

1min read

Bitcoin and Ethereum Surge as Trump Agrees to Pause Tariffs on Canada

Bitcoin and Ethereum, two of the world's leading cryptocurrencies, have surged in value following the announcement that U.S. President Donald Trump has agreed to pause tariffs on Canada for at least 30 days. The news has boosted market sentiment and led to a significant rebound in the prices of both digital assets.

Earlier this week, the U.S. threatened to impose tariffs on Canada, Mexico, and China, which caused chaos in the crypto markets. Tech stocks were already wobbling due to DeepSeek, but the implementation of tariffs caused a reported $2 billion wipeout. The actual damage could have been as high as $10 billion.

Bitcoin dipped to $92,000 on Monday morning, and crypto-related stocks saw notable liquidations. Notably, MicroStrategy's MSTR lost 8% following tariff announcements. However, Mexican President Claudia Sheinbaum reached an agreement with Trump, postponing a possible trade war. According to an announcement from Canadian Prime Minister Justin Trudeau, Canada has reached a similar agreement that will pause all tariffs for 30 days.

"I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Proposed tariffs will be paused for at least 30 days while we work together," Trudeau said.

These tariffs have caused substantial trauma to the markets, but Canada and Mexico have already negotiated a deal. This is a particular relief because Canada is well-integrated in the crypto economy and may play an outsized role in crypto values.

Since the agreement, all the main "Made in USA" cryptocurrencies have bounced. Bitcoin and XRP, in particular, have mostly recovered from earlier liquidations. At the time of reporting, BTC surged back to $102,000.

MicroStrategy and other Bitcoin mining stocks, such as MARA, have further substantially recovered from earlier losses following Canada’s deal on tariffs. Earlier today, MicroStrategy surprised the market by breaking its 12-week streak on Bitcoin purchases. Michael Saylor did

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.