Crypto Markets Rally as Trade War Fears Ease; Bitcoin Breaks $100K, XRP Surges 40%
Cryptocurrency markets saw a significant rebound on Monday, with Bitcoin (BTC) rising above $100,000 as trade war concerns eased following a breakthrough agreement between Mexico and U.S. President Donald Trump.
Mexican President Claudia Sheinbaum confirmed that her government would deploy 10,000 troops to the U.S. border to combat illegal arms and drug trafficking. She also announced that tariffs on Mexico would be delayed for one month, marking a major de-escalation in tensions. As a result, the odds of Trump removing tariffs against Mexico before May surged to 80% on prediction marketplace Polymarket, up from around 50% earlier in the day.
In addition to this agreement, President Trump signed an executive order to establish a U.S. sovereign wealth fund, which contributed to the positive momentum in the crypto markets. Led by pro-crypto secretaries from the Treasury and Commerce Departments, the fund could pave the way for the U.S. government to purchase and hold digital assets.
Bitcoin surged nearly 12% from its Monday low of $91,300, reaching just under $102,000 by the end of the day, up 3.5%. XRP surged 40% to $2.70, recovering all of its previous losses. Solana’s SOL also made a strong recovery, climbing over 5% to $210. Ethereum’s ether (ETH) rallied above $2,700, up from around $2,000, but still remained 7% lower for the past 24 hours.
Meanwhile, U.S. stock markets narrowed earlier losses, with the Nasdaq closing down 1.2% and the S&P 500 losing 0.76%.
Bitfinex analysts commented that Bitcoin had initially dropped in response to tariff news, but the sell-off was amplified due to Bitcoin’s nature as a tail-risk asset, which tends to see sharper declines when market sentiment weakens.
Despite ongoing macroeconomic uncertainties, U.S. policy changes, and broader risk asset corrections, the analysts noted that Bitcoin shows structural strength on longer timeframes, indicating that it remains on a strong upward trend despite short-term volatility.
