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 delayed the imposition of 25% tariffs by the Trump administration. This agreement has alleviated fears of a 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 reinforced Bitcoin's position as a viable financial asset, further contributing to its price surge.
The Proshares Ultrashort Bitcoin ETF (SBIT) experienced a decline, dropping 1.15% to $9.44 at 3:00 PM on Monday, February 3.