Geopolitical developments have played a crucial role in Bitcoin's price movement today, particularly the easing of trade tensions between the U.S. and Mexico. The Mexican government's decision to deploy troops to the U.S. border to curb arms and drug trafficking has led to a delay in the imposition of 25% tariffs by the Trump administration. This agreement has alleviated fears of a full-blown trade war, boosting investor sentiment and driving Bitcoin's price upward. Additionally, the Federal Reserve's recent positive stance on digital assets, as expressed by Fed Chair Jerome Powell, has further reinforced Bitcoin's position as a viable financial asset, contributing to its market recovery.
The ProShares Bitcoin Strategy ETF (BITO) experienced a modest increase, rising 0.72% to $23.82 at 3:00 PM on Monday, February 3.