Bitcoin and Cryptocurrencies Recover After Trump Delays Tariffs

Bitcoin and Cryptocurrencies Rebound

Bitcoin and other major cryptocurrencies saw a significant recovery on Tuesday after U.S. President Donald Trump delayed new tariffs on Canada and Mexico. Bitcoin rose over 2% to $99,142.0, while Ethereum gained over 3% to $2,786.93. The recovery came after a sharp decline earlier in the week, with Bitcoin dropping to $91,695.8 and Ethereum falling over 20% to $2,261.27.

Tariff Delays Ease Market Concerns

The initial announcement of tariffs on Canadian and Mexican imports, along with a 10% levy on Chinese goods, had triggered a broad selloff across risk assets. However, Trump’s decision to postpone the tariffs by 30 days reduced immediate liquidity concerns. Cryptocurrencies, which are highly sensitive to macroeconomic uncertainties, saw a rebound as traders resumed buying.

Stablecoin Regulatory Framework Proposed

Republican Sen. Bill Hagerty introduced a bill to establish a regulatory framework for stablecoins. The "Guiding and Establishing National Innovation for U.S. Stablecoins" bill would require issuers to back payments with Treasury bills, U.S. dollars, and Federal Reserve notes, while mandating monthly audited reports. The proposal aims to create a "safe and pro-growth" environment for stablecoins.

Altcoins Show Mixed Performance

Most altcoins climbed back on Tuesday, with XRP surging over 5% to $2.637 and Solana gaining 2.5%. However, Polygon fell 1.9%, and Dogecoin saw a slight decline. Meme token $TRUMP dropped 7.5% to $17.56 after reaching a record low of $16.349 on Monday.

Market Outlook

While the crypto market has stabilized for now, analysts caution that ongoing geopolitical developments and potential trade restrictions could weigh on cryptocurrencies in the coming months. The 24/7 nature of crypto trading makes it a key asset class for liquidity during market stress.