Cryptos Rebound as U.S.-Mexico Tariff Deal Eases Trade War Fears; Bitcoin Reaches $100K, XRP Jumps 40%

Cryptocurrency markets experienced a significant bounce on Monday, with Bitcoin (BTC) climbing back above $100,000 as the threat of an all-out trade war diminished following a crucial agreement between Mexico and U.S. President Donald Trump.

Mexican President Claudia Sheinbaum announced that Mexico would deploy 10,000 troops to the U.S. border to combat illegal arms and drug trafficking. She also revealed that the U.S. would delay imposing tariffs on Mexico for a month, leading to a rapid shift in market sentiment. According to prediction platform Polymarket, the likelihood that Trump would lift the tariffs on Mexico before May surged to 80%, up from 50% earlier in the day.

Following the tariff news, President Trump signed an executive order creating a U.S. sovereign wealth fund, a move that further fueled optimism in the crypto markets. The Treasury and Commerce Departments, both led by pro-crypto figures, will manage the fund, which could open doors for the U.S. government to purchase and hold digital assets.

Bitcoin surged nearly 12% from a low of $91,300 to just under $102,000, marking a 3.5% increase on the day. XRP experienced a 40% surge, reaching $2.70 and recovering all of its earlier losses. Solana’s SOL also made notable gains, rising 5% to $210. Ethereum’s ether (ETH) surged above $2,700, bouncing back from around $2,000, but remained 7% lower compared to the previous 24 hours.

Meanwhile, U.S. stock markets reduced earlier losses, with the Nasdaq closing 1.2% lower and the S&P 500 down by 0.76%.

Bitfinex analysts noted that Bitcoin’s initial decline following the tariff announcement was exacerbated due to its position as a tail-risk asset, which tends to experience sharper drops when market sentiment weakens.

However, despite the broader market volatility and ongoing economic concerns, analysts highlighted Bitcoin’s structural strength over longer timeframes, suggesting the cryptocurrency remains in a solid upward trend despite short-term fluctuations.