The cryptocurrency market has bounced back after experiencing volatility due to fears surrounding U.S. trade tariffs. President Donald Trump has temporarily delayed imposing tariffs on Canadian and Mexican imports for 30 days while negotiations continue, leading to a positive market reaction.

Why Did Trump Pause Tariffs?

Initially, Trump planned to impose a 25% tariff on goods from Canada and Mexico. However, after discussions with Canadian Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum, he agreed to postpone the decision.

• Trudeau’s campaign included promises to enhance border security and crack down on drug cartels, which aligned with U.S. concerns.
• Sheinbaum met with Trump to discuss border security improvements and negotiate trade terms between the two nations.

Despite the temporary delay, Trump has made it clear that tariffs are still on the table, keeping investors cautious.

Crypto Market Sees Immediate Recovery

Before the tariff delay, the crypto market saw a sharp decline as investor sentiment turned negative:

• Bitcoin fell below $92,000, while Ethereum dropped under $2,500 amid tariff concerns.
• Bitcoin rebounded to over $101,000, and Ethereum climbed back to $2,880 following the tariff delay.
• The Crypto Fear & Greed Index hit 72/100, signaling a shift to “greed”, reflecting renewed optimism among investors.

Analysts view this tariff delay as a critical factor in stabilizing the market after recent turbulence.

Expert Predictions: A Potential Bull Run?

Market analysts see the delay as a bullish signal for crypto:

• Pav Hundal (Swyftx) believes the pause on tariffs has increased investor confidence, possibly setting up a new bull run.
• Sean Dawson (Derive.xyz) suggests that Trump’s executive order to establish a sovereign wealth fund could boost crypto, especially since Commerce Secretary nominee Howard Lutnick is pro-digital assets.
• Chris Chung (Titan, Solana swap platform) argues that the market overreacted to the tariff news since crypto transactions aren’t taxed, limiting the direct impact of trade tariffs.

What’s Next for Crypto?

With market recovery underway, Trump’s next move remains the key factor influencing crypto prices.

• If tariffs are permanently abandoned, Bitcoin and altcoins could reach new all-time highs.
• If tariffs resurface, another wave of volatility could hit the market.

As global economic uncertainty persists, crypto remains a key alternative for investors navigating inflation and geopolitical risks.

While most view the tariff delay as a short-term win for crypto, the real driver of market sentiment may be Trump’s sovereign wealth fund initiative, which could introduce institutional capital into digital assets. Additionally, the Crypto Fear & Greed Index’s shift to “greed” suggests a broader risk-on appetite, which could extend beyond tariffs.