Bitcoin Surges Past $100K as Trade War Fears Subside; XRP Jumps 40% Following U.S.-Mexico Agreement
Cryptocurrency markets experienced a strong recovery on Monday, with Bitcoin (BTC) breaking above $100,000 after tensions surrounding a potential trade war began to ease, following an agreement between Mexico and U.S. President Donald Trump.
Mexican President Claudia Sheinbaum announced that her government would deploy 10,000 troops to the U.S. border to tackle illegal arms and drug trafficking. She also confirmed that the U.S. would hold off on implementing tariffs on Mexico for one month, leading to a sudden shift in market sentiment. On the prediction market Polymarket, the odds that Trump will remove tariffs against Mexico before May shot up to 80%, up from 50% earlier that day.
President Trump also signed an executive order to launch a U.S. sovereign wealth fund, further buoying optimism in the crypto space. The fund, led by the Treasury and Commerce Departments (both headed by pro-crypto figures), could potentially enable the U.S. government to buy and hold digital assets.
Bitcoin saw a notable rise, jumping nearly 12% from its low of $91,300 to just under $102,000, up 3.5% on the day. XRP surged by 40%, reaching $2.70 and erasing all of its earlier losses. Solana’s SOL also rebounded, rising over 5% to $210. Ethereum’s ether (ETH) jumped above $2,700, recovering from a low of $2,000, though it remained 7% lower over the past 24 hours.
In the broader stock market, U.S. equities pared down earlier losses. The Nasdaq closed 1.2% lower, while the S&P 500 ended the day down by 0.76%.
Bitfinex analysts pointed out that while Bitcoin initially saw a decline in response to the tariff news, the sell-off was exacerbated by its nature as a tail-risk asset, which tends to drop more sharply during times of negative sentiment. Despite this, they noted that Bitcoin continues to demonstrate strong structural strength on longer timeframes, suggesting that it remains in a solid bullish trend despite short-term fluctuations.
