The easing of trade tensions between the U.S. and Mexico has injected optimism into the cryptocurrency market, propelling Bitcoin closer to the $100,000 threshold. This development follows Mexico's commitment to deploying troops to the U.S. border, alleviating fears of a trade war and boosting investor confidence. The potential removal of U.S. tariffs against Mexico has further calmed market nerves, contributing to a rebound in crypto prices. Analysts are optimistic, suggesting that the recent market correction may have concluded, presenting a 'buy-the-dip' opportunity. Historical trends and technical indicators, such as a bullish flag pattern, also support the potential for a strong breakout in Bitcoin's price later this month.
The ProShares Short Bitcoin Strategy ETF (BITI) has responded to these market dynamics, rising 2.83% to $22.54 as of 11:20 AM on Monday, February 3.