Crypto Market Soars After Tariff Tussle: Bitcoin & Ethereum Rise Like a Phoenix! 🐲

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Hold onto your hats, folks! After a brutal sell-off, Bitcoin and Ethereum have risen from the ashes, soaring to new heights. And why, you ask? Well, it seems that the threat of tariffs from that fellow in the White House has been paused for our neighbors to the north and south. Optimism abounds! But will it last? Only time will tell…

Yes, sir! The digital asset market was sent reeling after the U.S. President announced tariffs on Canada, Mexico, and China. But, as if by magic, a temporary pause on the tariffs for Canada and Mexico has sparked a renewed sense of hope in the market.

Bitcoin, which took a tumble to $91,200 on Feb. 3, has since recovered, trading around $101,000 as of Feb. 4. That’s a 7% gain in just 24 hours, though it’s still down nearly 2% on a weekly basis.

Ethereum, which plunged even deeper to $2,460, has bounced back with gusto, rising nearly 10% in the last 24 hours to $2,800. However, it remains 12% lower than it was a week ago.

The broader crypto market has followed suit, with total market capitalization surging 8.5% in just one day to reach $3.43 trillion. Not too shabby, if you ask me!

And, as if by the wave of a magic wand, investor sentiment has taken a turn for the better, too. The Crypto Fear & Greed Index has climbed back to 72, indicating a shift into “greed” after hitting a fear-driven low of 44 during the crash.

Tariff fears and market jitters: a wild ride!

The sell-off began on Feb. 3, when the President’s order introduced new tariffs, causing shockwaves across financial markets, including crypto. China was hit with a 10% tariff, while Canada and Mexico faced steeper 25% duties. The result? Uncertainty and tumbling crypto prices.

But, as if by a stroke of luck, diplomatic efforts were already underway. Canada’s Prime Minister, Justin Trudeau, announced a temporary 30-day pause on the tariffs, and Mexico followed suit. And just like that, the market began to recover.

Despite these temporary resolutions, uncertainty remains. The situation is as fluid as a river, and a prolonged trade war or additional geopolitical shifts could easily reignite selling pressure. So, buckle up, folks! It’s going to be a wild ride!

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2025-02-04 07:41