Bitcoin (BTC) is back trading at $100,000 U.S. as the threat of an escalating trade war between America and its neighbours recedes.
The price of Bitcoin, the largest cryptocurrency by market capitalization, was below $95,000 U.S. to start the trading week amid a flight to safety among investors that was sparked by tariffs the U.S. planned to impose on Canada and Mexico.
However, crypto is now rebounding on news that the U.S. has agreed to pause for one month its threatened tariffs on both Mexico and Canada in exchange for tighter border security.
The drop in crypto prices was the result of investors fleeing risk assets as Trump’s tariff threats spark concerns about a global trade war.
While the threat of a trade war with Canada and Mexico recedes, it looks like a tariff skirmish between the U.S. and China remains ongoing.
The U.S. has announced 10% tariffs on imported goods from China, and the Chinese government in Beijing has countered with proposed 15% tariffs on U.S. imports.
Trump is also threatening to impose tariffs on Europe and the United Kingdom.
As a result, investors have turned cautious and are selling riskier assets such as crypto.
Bitcoin’s price has risen 6% so far in 2025.