Bitcoin (BTC) Rebounds to $100,000 as Tariff Threat Eases

Prices for cryptocurrencies are rebounding, with Bitcoin (BTC) back above $100,000 as the threat of U.S. tariffs and an escalating trade war ease somewhat.

The price of Bitcoin (BTC), the largest cryptocurrency by market capitalization, was down 3% and trading below $95,000 to start the week amid a broad selloff in equities that was sparked by tariffs the U.S. imposed on key trade partners such as Canada, Mexico and China.

However, crypto is now rebounding alongside stocks on news that the U.S. has agreed to pause for one month its threatened tariffs on Mexico after that country agreed to send 10,000 soldiers to help solidify the border with America. Shortly after noon hour, BTC was up 2.24% to $100,083.95.

ETH Continues to Fall

While many cryptocurrencies have recovered, the price of Ethereum (ETH), the second-largest crypto, remains down 7% on the day and trading at $2,750 per digital token. The drop in ETH continues an ongoing trend for that digital asset and comes as many investors flee risk assets as Trump’s tariffs spark uncertainty concerning a global trade war.

In addition to tariffs imposed on imports from Canada and China, Trump is also threatening to impose similar tariffs on Europe and the United Kingdom. As a result, investors are selling out of riskier assets such as cryptocurrencies and moving to the sidelines, holding cash or buying bonds.

Bitcoin’s price is down from an all-time high slightly above $109,000 reached on Jan. 20, the day of Trump’s inauguration.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 43.65% in the last 12 weeks.