- The cryptocurrency market started February with significant losses due to inflation concerns
- Trump’s announcement of halting tariffs on Mexican imports led to a quick recovery in Bitcoin and XRP prices
- The agreement with Mexico involves deploying soldiers to the U.S. border to combat illegal immigration and fentanyl trafficking
The cryptocurrency market started off February’s first week in the red. Led by major bearish sentiment of a potential inflationary growth in the U.S. economy, nearly all digital assets lost substantial amounts of value on February 3rd.
Bitcoin began the day losing almost 6% of its value, tumbling to as low as $92,000 throughout the day. XRP took an even worse beating, losing over 16% of value in the previous 24 hours. However, breaking news coming from the White House has prompted a recovery in the market.
Only a couple of minutes ago, Donald Trump posted on his Truth.Social account. The President reveals that, after a conversation with Mexico’s President Claudia Sheinbaum, the U.S. will no longer impose 25% tariffs on Mexican imports.
The agreement involves Mexico supplying 10,000 Mexican soldiers to operate on the U.S./Mexican border. The forces are to be tasked with stopping illegal immigration and fentanyl into American ground.
The American Government will now halt tariffs for one month. After that trial period expires, President Trump will negotiate an agreement with Mexican representatives in order to achieve common ground.
This news alone was enough to prompt a resurgence in the Bitcoin market. Shortly after the report, BTC went from $94,543 to the current $99,031—up 0.6% over the past hour. Meanwhile, XRP regained over 5% of its value in the previous hour alone. Currently, the altcoin trades at $2.65, up from its intraday low of $1.94.
Moreover, the recent market uptrend makes it obvious that inflationary pressure is still a major concern among cryptocurrency investors. While America and Mexico may have come to terms, there is still an issue with two of the top trade partners: Canada and China.
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