Trump's Tariff Reprieve Boosts Crypto Markets, Ethereum Futures Surge

President Donald Trump's decision to temporarily suspend tariffs on Canada and Mexico has sparked a swift recovery in cryptocurrency markets, following a weekend crash that wiped out $10 billion in market capitalization. The rebound came after both North American nations agreed to enhance their border security measures.

The crypto market's initial downturn began when Trump announced potential tariffs against America's largest trading partners. Bitcoin dropped from nearly $105,000 to $92,000, while Ethereum experienced an 18% crash, falling to $2,135 during Asian trading hours. The crash marked Ethereum's steepest single-day decline since May 2021. The sharp downturn led to over $600 million in Ethereum futures positions being liquidated, contributing to a total of $2.2 billion in crypto derivatives liquidations across the market.

Solana demonstrated stronger recovery potential, climbing 13.5% to $216 from its intraday low of $190. Trading volume for SOL increased by 27% during the day, according to GeckoTerminal data, highlighting growing interest in the platform's meme-coin trading and decentralized finance sectors.

The market started to turn around after Mexico reached an agreement with the United States. Mexican President Claudia Sheinbaum announced plans to deploy 10,000 soldiers to the US border to combat illegal drug trafficking and unauthorized immigration. Following Mexico's lead, Canadian Prime Minister Justin Trudeau negotiated a similar pause on tariffs for at least 30 days. Canada's agreement included a $1.3 billion border plan to increase personnel and equipment. The country also considered creating a "Fentanyl Czar" and classifying cartels as terrorist organizations.

Eric Trump's social media activity appeared to influence market sentiment. He posted on X about Ethereum, stating "In my opinion, it's a great time to add ETH." The post's editing history revealed he had removed a second sentence that read "You can thank me later."

World Liberty Finance, a decentralized finance project backed by the Trump family, made notable moves during the market recovery. The project's Gnosis Safe Proxy executed multiple transfers totaling approximately $60 million, with $55.69 million in Ethereum and $5 million in USDC, primarily directed to Coinbase Prime deposits.