Bitcoin Surges to $102K as US, Canada Postpone Tariffs

Bitcoin Surges to $102,000 as US and Canada Postpone Tariffs Amid Ongoing Trade Tensions with China

Bitcoin's price surged to $102,000 on Monday, following the US and Canada's decision to postpone tariffs for 30 days. The move comes amid ongoing trade tensions with China, which has been quiet on the matter. The pause in tariffs has provided a bid for Bitcoin, with major cryptocurrencies like Ethereum and Solana also recovering from earlier losses.

Ethereum, the world's second-largest crypto, bounced back to $2,881 after plummeting to $2,135 during Asian trading hours, a drop that marked its steepest single-day decline since May 2021. The 18% crash during manic Monday trading in the US morning wiped out more than $600 million in Ethereum futures positions, according to Decrypt.

Solana, on the other hand, demonstrated greater resilience, climbing 13.5% to $216 from its intraday low of $190. Solana remains little changed at $218, data shows. The recovery outpaced Ethereum's gains, showing SOL's growing strength in sectors such as meme-coin trading and decentralized finance. Trading volume for SOL swelled by 27% on the day, according to GeckoTerminal data.

Strong performers this cycle, such as SOL and XRP, led the recovery, as AI-related tokens, which were among the worst performers yesterday, rebounded. The pause on tariffs for Mexico and now Canada "provided an additional bid for SOL," Jung said.

The market turmoil kicked off after Trump threatened tariffs against America's largest trading partners, sparking fears of inflation and tighter monetary policy. The sell-off from geopolitical tensions triggered over $2.2 billion in crypto derivatives liquidations, marking one of the worst in the industry’s history.

However, some observers such as Ben Zhou, CEO of Bybit, note that the figure could be underreported due to API limitations on exchange data.

ETH's recovery "initially lagged" but “saw a strong bounce,” moments after Eric Trump posted on X about the crypto, Jung noted.