Bitcoin climbs back above $101,000 as U.S. delays tariffs on Mexico and Canada

Bitcoin bounced back sharply, topping $101,000 as the U.S. delayed tariffs on Mexican and Canadian goods, calming fears of a full-scale trade war. This follows President Trump’s earlier threat to impose heavy import duties on Mexico, Canada, and China, triggering a wave of sell-offs across markets. But the tariffs are now temporarily on hold, allowing Bitcoin to regain ground as investors shifted into risk-on mode.

Bitcoin was last up more than 3%, trading at $101,241.37, according to Coin Metrics, after plunging to $91,212.63 in the initial aftermath of the tariff announcement. Just last Friday, it had surpassed $102,000 before the tariff fears hit.

While traditional stocks like Coinbase saw a 2% dip, MicroStrategy gained 3%. The swings show how Bitcoin has positioned itself as a "safe haven" in times of uncertainty, at least compared to riskier assets.

“Bitcoin’s ability to outperform the market during a panic demonstrates its growing status as the safest bet in crypto,” said Ben Kurland, CEO of crypto research platform DYOR. “When things go south, liquidity moves into Bitcoin instead of riskier bets, reaffirming its role as the industry's reserve asset.”

The tariff delay wasn’t the only development. On Monday, Trump also signed an executive order creating a sovereign wealth fund, which some crypto enthusiasts are speculating could eventually house government-seized cryptocurrency. While the order doesn’t mention Bitcoin by name, the idea of the U.S. government managing a crypto reserve has certainly caught attention.

This latest news comes after a turbulent weekend, where the U.S. announced tariffs: 25% on imports from Mexico and Canada, and 10% on China, affecting over $1.6 trillion in trade. Bitcoin alone saw $377.6 million in long liquidations within 24 hours, while Ether experienced $479 million in liquidations. Smaller altcoins and meme coins were hit even harder.

The big twist? Canada is now in the same boat as Mexico. The U.S. has agreed to hold off on tariffs against Canadian goods for 30 days. This momentary reprieve has brought some relief to markets, but uncertainty still looms, especially since the trade conflict could easily reignite.

Despite Bitcoin's long-term appeal as an inflation hedge, it’s still behaving like a risk asset in the short term. With tensions simmering around the trade war, the $90,000 level is a critical support point for Bitcoin. If it breaks below, some analysts warn we could see a steeper decline toward $80,000.

Jeff Park, head of alpha strategies at Bitwise Asset Management, believes a protracted tariff conflict would be a "long-term win" for Bitcoin, especially if it weakens the dollar and U.S. interest rates. But for now, volatility remains, and Bitcoin's ability to weather this storm will be put to the test. Whether the tariff delay is enough to stabilize the market, or just a temporary pause, remains to be seen.