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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Cryptocurrency markets rebounded sharply on Monday as fears of an intensified U.S.-Mexico trade war eased following a diplomatic resolution.
Bitcoin (BTC) briefly surged past $102,500, while Ethereum (ETH) climbed to $2,920, according to data from CoinMarketCap.
As of now, the leading cryptocurrency is trading at around $98,500, up by more than 5% over the past day.
Mexico President Announces Measures to Address U.S. Concerns
The rally came after Mexico’s President Claudia Sheinbaum announced a series of measures aimed at addressing U.S. concerns over illegal arms and drug trafficking.
As part of the agreement, Mexico will deploy 10,000 troops along its northern border, prompting U.S. President Donald Trump to delay planned tariffs for a month.
The move quickly shifted market sentiment, with odds on prediction platform Polymarket soaring to 80%—up from 50% earlier in the day—suggesting Trump may remove the tariffs entirely before May.
Adding to the bullish momentum, President Trump signed an executive order establishing a U.S. sovereign wealth fund.
The initiative, led by the Treasury and Commerce Departments, both helmed by crypto-friendly officials, could pave the way for government investments in digital assets.
Altcoins also rallied in response. XRP soared 40% to $2.70, erasing its overnight losses, while Solana (SOL) climbed 5% to $210.
Meanwhile, U.S. equities pared earlier declines, with the Nasdaq closing down 1.2% and the S&P 500 shedding 0.76%.
“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, which tends to experience sharper declines when market sentiment weakens,” Bitfinex analysts noted in a report.
“While BTC remains sensitive to macroeconomic factors, it is also exhibiting structural strength on higher timeframes, suggesting that despite ongoing economic uncertainties, US policy changes, and broader risk asset corrections, it remains in a robust trend despite short-term volatility.”
US Spot Bitcoin ETFs See $5B Inflows in January
US spot Bitcoin exchange-traded funds (ETFs) saw inflows totaling nearly $5 billion in January, a strong start that could push them toward $50 billion or more by the end of the year, according to Bitwise CIO Matt Hougan.
As reported, Hougan noted that spot Bitcoin ETFs absorbed $4.94 billion in January alone, an annualized pace of approximately $59 billion.
He compared this to $35.2 billion in total inflows during 2024, emphasizing the growing investor appetite for Bitcoin-backed investment products.
Despite noting month-to-month fluctuations, Hougan remains confident that Bitcoin ETFs will exceed $50 billion in inflows by the end of 2024.
Among the major players, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the market, attracting $3.2 billion in net inflows for January.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with nearly $1.3 billion in net inflows, based on Farside Investors data.
Other ETFs saw varied levels of inflows, with Grayscale’s Bitcoin Mini Trust ETF (BTC) pulling in $398.5 million, and Bitwise’s Bitcoin ETF (BITB) accumulating over $125 million.
