Bitcoin's price movement today has been significantly influenced by geopolitical developments, particularly the easing of trade tensions between the U.S. and Mexico. Earlier in the day, Bitcoin experienced a sharp decline, dropping to a low of $91,170, as the market reacted to the imposition of new U.S. tariffs on imports from Canada, Mexico, and China. However, the announcement of a one-month delay in these tariffs, following an agreement between U.S. President Donald Trump and Mexican President Claudia Sheinbaum, has led to a positive shift in market sentiment. This development has alleviated some of the immediate concerns over a full-blown trade war, allowing Bitcoin to recover and rally past the $100,000 mark.
The announcement of a U.S. sovereign wealth fund, as directed by President Trump, has also contributed to the bullish sentiment in the crypto market. While Bitcoin was not explicitly mentioned in the executive order, the potential for the fund to include digital assets has fueled speculation and optimism among investors. The Treasury and Commerce Departments, led by pro-crypto secretaries, are expected to spearhead this initiative, which could further bolster Bitcoin's appeal as a strategic asset. "Bitcoin saw a decline in response to the tariff news, but the sell-off was more pronounced due to bitcoinʼs nature as a tail-risk asset," noted analysts from Bitfinex, highlighting the cryptocurrency's sensitivity to macroeconomic factors.
Bitcoin's price has surged by 4.26% today, reaching a current level of $101,780.47, with a high of $102,005.03 and a low of $92,584.96.