The recent easing of trade tensions between the U.S. and Mexico has provided a much-needed boost to the cryptocurrency market, with Bitcoin rallying towards the $100,000 mark. This positive sentiment comes after Mexico's President agreed to deploy troops to the U.S. border to curb arms and drug trafficking, a move that has significantly reduced fears of a full-blown trade war. The agreement has led to a sharp bounce in crypto prices, with Bitcoin and other major cryptocurrencies like XRP and ETH retracing some of their recent losses. The odds of U.S. President Donald Trump removing blanket tariffs against Mexico have also increased, further calming market nerves.
Despite the initial crash triggered by Trump's tariffs on Canada, Mexico, and China, which led to a massive $2.2 billion in liquidations, the market is showing signs of recovery. Analysts suggest that the recent liquidation event might signal the end of a price correction, presenting a potential 'buy-the-dip' opportunity. The market's resilience is also supported by the historical trend of Bitcoin performing well in February, as well as the formation of a bullish flag pattern on the daily chart, indicating a possible strong breakout later this month.
Bitcoin's price has seen a 0.77% increase today, reaching a current price of $98,368.98, with a high of $99,268.33 and a low of $92,584.96.