Crypto markets rebounded Monday after the U.S. and Mexico paused tariff threats for one month. Bitcoin and Solana led the recovery.
US-Mexico Tariff Pause Boosts Markets
President Donald Trump announced a one-month tariff pause with Mexico. The move followed a friendly conversation with Mexican President Claudia Sheinbaum.
Key Details of the Agreement
Mexico agreed to deploy 10,000 soldiers to curb fentanyl and illegal migration. Negotiations will be led by U.S. and Mexican officials.
Crypto Market Recovery
Bitcoin rose 2.3% to 99,500,whileSolanagained299,500,whileSolanagained2207.57. Ether recovered to $2,700, and XRP and SUI surged nearly 50%.
Earlier Market Sell-Off
Crypto markets faced steep losses over the weekend. Bitcoin fell below $93,000, and Ether dropped over 35%. Solana lost 24%.
Impact of Tariffs on Markets
Bernstein analysts noted tariffs could strengthen the dollar and reduce rate cuts. This lowers global liquidity for risk-on assets like crypto.
Long-Term Outlook for Bitcoin
Despite short-term volatility, Bitcoin’s long-term value remains strong. It serves as a hedge against monetary debasement and inflation.
Crypto Indices Rebound
The GMCI 30 rose to 175.12, while GMCI DeFi gained 2.7%. The GMCI USA, tracking U.S.-based protocols, increased by 1%.
Crypto Stocks Recover
Exodus Movement and Iris Energy turned positive, reflecting broader market optimism after the tariff pause.
Conclusion
The US-Mexico tariff pause provided relief to crypto markets. Bitcoin and Solana led the rebound, offering hope for investors.
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