Bitcoin Reclaims $100K Amid Policy Uncertainty

The crypto market staged a dramatic recovery today, reversing steep losses from yesterday’s rout triggered by US President Donald Trump’s tariff announcement over the weekend.

The crypto market experienced a significant recovery on Monday, reversing the steep losses incurred during Sunday's rout, which was triggered by US President Donald Trump's tariff announcement.

Following news that Mexico and Canada had secured a one-month delay on new U.S. tariffs, Bitcoin and the broader market saw sharp rebounds.

Bitcoin Surges Past $100K Amid Policy Uncertainty

Bitcoin, which had dropped to $92,000 in the wake of Trump's tariff threats, surged 7.14% in the past 24 hours, trading at around $101,000 at press time. Ethereum (ETH) saw an even stronger rebound, climbing 12% to $2,809.

Among altcoins, XRP led the recovery with a 23.34% surge, while Cardano (ADA), Sui (SUI), Pepe (PEPE), Ondo (ONDO), Aptos (APT), and Mantle (MNT) each posted gains exceeding 20%.

The rebound in the crypto market mirrored the broader recovery seen in traditional risk assets, such as equities. The S&P 500, which dropped to 5,920 on the tariff news, had since reclaimed the 6,000 level.

This highlights the increasing correlation between crypto and macroeconomic developments, particularly those tied to US trade policy.

The Trump Trade: Volatility Returns to Markets

BRN analyst Valentin Fournier described the events over the past few days as "Trump trading at its best."

"The rapid market swings following political maneuvers signal what could be a new era of volatility as Trump’s economic policies take shape in his second presidency," Fournier added.

With trade tensions still present, crypto traders should be prepared for continued unpredictability in the coming months.

The temporary pause on tariffs was secured after Mexico’s President Claudia Sheinbaum agreed to deploy 10,000 National Guard troops to bolster border security. Canada’s Prime Minister Justin Trudeau also announced a $1.3 billion border security initiative. These moves delayed the 25% tariffs on Mexican and Canadian goods, but Trump's 10% tariff on Chinese imports remained set to take effect as planned.

Crypto's Sensitivity to Global Trade Policy

The market's response to the tariff developments highlighted the increasing interplay between crypto and global trade policy. A similar market reaction was observed last week when Bitcoin dropped after stock market losses linked to China’s AI startup DeepSeek.

Over the past year, Bitcoin has shown sensitivity to US economic data releases, Federal Reserve policy shifts, and geopolitical developments, as the asset becomes increasingly correlated with traditional financial markets, reinforcing Bitcoin’s dual nature as both a speculative asset and an emerging alternative to traditional financial hedges. While Bitcoin has historically been viewed as a non-correlated asset, recent movements suggest that institutional adoption has tethered it more closely to broader economic forces.

What's Next?

With a one-month deadline in place for further tariff negotiations, crypto traders will be keeping a close eye on upcoming trade talks.

Given Trump's penchant for unpredictable policy shifts, further volatility is to be expected. If a broader trade war emerges, crypto's role as both a risk asset and an inflation hedge will be tested once again. For now, today's rebound signals that the market remains resilient—but whether this stability holds will depend on how the next phase of trade negotiations unfolds.