The crypto market rebounded after Donald Trump agreed to delay tariffs on Canada and Mexico following a conversation with both presidents. As a result, Bitcoin (BTC) rebounded to reclaim the $100,000 level, with the flagship cryptocurrency trading at $100,360, up nearly 7% over the past 24 hours. However, it still has not reached pre-weekend levels.
Other cryptocurrencies rebounded as well, with Ethereum (ETH) up nearly 13% and trading around $2,800. Buyers will look to continue its upward trajectory and reclaim $3,000. Meanwhile, Ripple (XRP) is up over 22%, trading around $2.70. Solana (SOL) has reclaimed $200 and is up over 10%, trading at $214. Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Stellar (XLM), Hedera (HBAR), Toncoin (TON), Litecoin (LTC), and Polkadot (DOT) also registered substantial gains.
Markets Rebound As Tariffs Put On Hold
The crypto market rebounded after President Donald Trump agreed to pause proposed tariffs on Canada and Mexico as negotiations continued. The pause was announced by Canadian President Justin Trudeau, who said that after a phone call with Trump, the tariffs would be paused for 30 days as the two countries negotiate and continue to work together. Trudeau added that Canada would implement a $1.3 billion border plan that includes appointing a Fentanyl czar, listing cartels as terrorists, and reinforcing the US-Canada border with helicopters and more personnel.
“I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan, reinforcing the border with new choppers, technology, and personnel, enhancing coordination with our American partners, and increasing resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
Tariffs against Mexico have also been paused for a month after President Claudia Sheinbaum announced the two leaders had reached a series of agreements. She also promised to reinforce the land border shared by both countries.
“Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now.”
Trump signed an executive order on February 1 imposing 25% tariffs on Canada and Mexico while slapping a 10% duty on China. China is also willing to negotiate with the country’s initial proposal involving the restoration of the Phase 1 trade deal signed during Trump’s first term, which requires Beijing to increase the purchase of US exports by $200 billion over two years.
MicroStrategy Pauses Bitcoin Buying Streak
MicroStrategy has paused its Bitcoin (BTC) purchases after announcing it will hold $30 billion worth of the cryptocurrency. The firm holds 471,107 BTC and is the largest public BTC holder. Michael Saylor announced the decision. Saylor stated the company did not sell stock shares between January 27 and February 2. The decision comes only a week after MicroStrategy purchased over $10,000 BTC worth over $1 billion.
“Last week, MicroStrategy did not sell any shares of Class A common stock under its at-the-market equity offering program and did not purchase any BTC. As of 2/2/2025, we hold 471,107 BTC acquired for $30.4 billion.”
The decision marks the end of 12 consecutive weeks of BTC purchases that began shortly before the US elections of November 2024. The firm started accumulating crypto in August 2020, with a 21,454 BTC purchase for $250 million. BTC dipped below $100,000 this weekend as markets reacted to US President Donald Trump imposing tariffs on Canada and Mexico. Trump has also threatened to impose tariffs on the European Union.
Several companies have followed MicroStrategy’s lead and purchased BTC as a hedge against inflation. Healthcare firm Semler Scientific and streaming platform Rumble have announced BTC purchases in the past 60 days, while crypto mining company MARA holds 44,394 BTC.
Crypto Czar David Sacks To Discuss US Crypto Leadership Plan
David Sacks, the White House crypto and AI czar, will hold a press conference to outline the US strategy for digital assets. Sacks will be joined by Senate Banking Committee Chairman Tim Scott (R-S.C.), Senate Agriculture Committee Chairman John Boozman (R-Ark.), House Financial Services Committee Chairman French Hill (R-Ark.), and House Agriculture Committee Chairman G.T. Thompson (R-Pa.).
The press conference will focus on how the Trump administration and Congress plan to make the US a leader in the crypto sector. Sacks will discuss the White House’s strategic approach to digital assets, which may include regulatory policies, innovation incentives, and national security considerations. The press conference comes at a time when discussions around digital asset regulation and its impact on the financial market.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) rebounded to reclaim $100,000 on Monday after plunging below $92,000 following Donald Trump’s announcement of Tariffs on Canada and Mexico. However, the leaders reached an agreement to pause tariffs for 30 days, leading to a quick rebound. The rebound occurred as institutional investors bought the dip around the $91,000-$92,000 mark. The flagship cryptocurrency is up nearly 6% but has slipped below $100,000 and is currently trading around $99,500. BTC faced considerable selling pressure over the weekend thanks to growing trade war concerns, triggering a wave of sell orders and pushing BTC into a steep decline. As a result, BTC plummeted to an intraday low of $91,274 on Monday before institutional investors chipped in, preventing a further decline and helping BTC reclaim $100,000.
Analysts have suggested a prolonged trade war could be beneficial for BTC because protectionist policies lead to heightened global economic uncertainty, forcing investors to seek alternative assets. Jack Toledano, CEO of Unity Wallet, highlighted the influence of Trump over crypto, stating,
“It’s remarkable the difference a day can make in the crypto world. What we have seen over the weekend is how, with one hand, Trump can make crypto leap to new highs, and with the other, he can wave his magic tariff wand and wipe out all the gains in both the crypto and equity markets.”
However, he attributed the current downturn to factors like technological and macroeconomic disruptions due to the AI arms race hotting up.
“Although the Trump factor is certainly at play, the recent downturn in Bitcoin’s value and the broader decline across global equity markets can also be attributed to technological disruptions, particularly as the AI arms race becomes red-hot following the introduction of DeepSeek.”
BTC struggled to build on Monday’s dramatic recovery, dropping after coming across resistance around $102,000. As a result, the price stalled before falling back into the red during the ongoing session. BTC has faced considerable volatility over the past week, starting with a drop to an intraday low of $98,360 last Monday before settling at $102,064. BTC continued to drop on Tuesday, falling 0.69% to $101,362. Buyers returned to the market on Wednesday as BTC rose over 2% and settled at $103,663. The price surged to an intraday high of $106,296 on Thursday before losing momentum and settling at $104,553. Sentiment changed on Friday after BTC failed to move past $107,000. As a result, the price dropped nearly 2% and settled at $102,616.
Source: TradingView
BTC slipped below the 20-day SMA on Saturday as it declined 1.54% and settled at $101,041. Bearish sentiment intensified on Sunday as BTC dropped below $100,000 and the 50-day SMA and settled at $97,881. Markets collapsed on Monday as Donald Trump confirmed tariffs on Canada and Mexico. As a result, BTC plunged to an intraday low of $91,274. However, institutional investors entered the fray and purchased BTC. As a result, BTC recovered and reclaimed $100,000, ultimately settling at $101,579, capping a volatile day with an increase of nearly 4%. BTC is back in the red during the ongoing session, down just over 2% and trading below $100,000 at $99,500.
Data from Coinglass suggests BTC has strong support at $90,000, where buyers have concentrated $1.8 billion in leverage. However, buyers will look to keep BTC above the 50-day SMA and attempt to reclaim $100,000 during the ongoing session. If BTC continues its decline, it could drop to $95,000 or $90,000. The RSI is currently at 47, just below the neutral zone. While the markets recovered on Monday, the MACD is still bearish, indicating we could see a price drop.
Ethereum (ETH) Price Analysis
On Sunday, Ethereum (ETH) plummeted over 20% in a matter of hours as market-wide panic took hold. The selloff was fueled by growing fears of a trade war, sending shockwaves across global markets and causing ETH and other cryptocurrencies to drop significantly. ETH, already struggling to reclaim key levels, registered a sharp decline, dealing a blow to investor confidence. According to analysts ETH must hold the crucial $2,700 level to prevent a deeper correction. A break below this level could lead to an extended bearish phase and delay chances of a recovery. ETH has declined nearly 40% since Friday, making it one of the steepest declines in recent years.
ETH dropped below the 20-day SMA last weekend and fell to an intraday low of $3,020 on Monday before recovering to settle at $3,183. Sellers retained control on Tuesday as ETH dropped 3.34% to $3,077. ETH remained above $3,000 as buyers returned to the market on Wednesday. As a result, the price rose .20% to $3,114. Bullish sentiment intensified on Thursday as ETH rose over 4% and settled at $3,248. The price rallied to an intraday high of $3,442 on Friday, briefly moving past key moving averages. However, it lost momentum after reaching this level and ultimately settled at $3,300, up 1.60%.
Source: TradingView
Sentiment changed over the weekend as ETH dropped over 5.50% on Saturday and dropped to $3,118. Bearish sentiment intensified on Sunday as the price slipped below the 200-day SMA and $3,000 to settle at $2,860. ETH plummeted to an intraday low of $2,160 on Monday as markets tanked. However, it recovered from this level to recoup losses and register a marginal increase to settle at $2,882. However, ETH is back in the red during the ongoing session, down over 6% and trading just above $2,700. If sellers retain control, ETH could drop below $2,500. Buyers must keep ETH above $2,600-$2,700 to prevent an even deeper downtrend. The MACD and RSI are flashing bearish, indicating ETH could see a significant downtrend unless sentiment changes.
Solana (SOL) Price Analysis
Solana (SOL)’s struggles continue as the crypto market drops yet again, with most altcoins in the red over the past hour. SOL recovered on Wednesday after starting the previous week on a bearish note, dropping to an intraday low of $220 on Monday. The price continued to drop on Tuesday, falling to $226 after a drop of 3.45%. The price recovered on Wednesday, rising marginally to stay above the 20-day SMA. Thursday saw SOL rise over 4%, and it moved to $238. However, bearish sentiment took over on Friday as the price fell nearly 3% and settled at $231.
Source: TradingView
SOL fell below the 20-day SMA on Saturday after plummeting over 8% and settled at $213. Bearish sentiment persisted on Sunday as the price went below the 50-day SMA, dropping to an intraday low of $192 before recovering to settle at $203. SOL plunged to an intraday low of $176 on Monday as the market crashed. However, it rebounded from this level to register an increase of 6.42% and settle at $216. The current session sees SOL down nearly 6% as buyers struggle to keep it above $200. If SOL slips below $200, the price could drop to $180. On the other hand, buyers will look to retake control and push SOL back above the 50-day SMA.
Chainlink (LINK) Price Analysis
Chainlink (LINK) fell sharply over the weekend as its recovery stalled thanks to macroeconomic conditions. LINK dipped below the 20 and 50-day SMAs on Tuesday after a drop of nearly 7% and settled at $22.61. Despite the strong bearish sentiment, LINK recovered on Wednesday, rising by 4.58% to move past the 20 and 50-day SMAs and settled at $23.65. Buyers retained control on Thursday, and LINK rose 3.38% and settled at $24.45. LINK rose to an intraday high of $26.39 on Friday before settling at $25.16, an increase of nearly 3%.
Source: TradingView
Sentiment changed over the weekend as LINK dropped nearly 9% to slip below the 20 and 50-day SMAs and settle at $22.97. Bearish sentiment intensified as LINK fell almost 11% to an intraday low of $19.32 before recovering to reclaim $20 and settling at $20.46. LINK plunged to an intraday low of $15.56 on Monday as markets took a bearish turn. LINK recovered from this level to reclaim $20 and settle at $21.67, registering an increase of nearly 6%. The current session sees LINK back in the red, down over 9% and trading at $19.67. Buyers must reclaim $20 to prevent a further decline. However, LINK could drop towards the 200-day SMA if sellers retain control. The MACD is bearish, indicating LINK could see a further downtrend.
NEAR Protocol (NEAR) Price Analysis
Near Protocol (NEAR) has traded in a downward trajectory since mid-January, slipping below key support levels and moving averages. The price fell to an intraday low of $4.36 on Monday and fell to $4.28 on Tuesday after registering a drop of 7.54%. NEAR recovered on Wednesday, rising nearly 3% and moving to $4.41. Bulls retained control on Thursday as NEAR registered an increase of 4.44% and settled at $4.60. Friday saw only a marginal increase as the 20-day SMA, acting as a dynamic resistance, came into play.
Source: TradingView
NEAR turned bearish on Saturday, dropping nearly 8% to $4.25. Bearish sentiment intensified on Sunday as NEAR fell almost 12% to an intraday low of $3.51 before recovering to settle at $3.75. Monday saw NEAR collapse as it fell to an intraday low of $2.74 thanks to a marketwide collapse. However, the price recovered from this level to register a marginal increase and settle at $3.77. NEAR is back in the red during the current session, with the price down over 12%.
Filecoin (FIL) Price Analysis
Filecoin (FIL) has declined substantially since the weekend, slipping below $4. Sellers remain in control and aim to push the price below $3. FIL started the previous week in the red, dropping to an intraday low of $4.34 on Monday before settling at $4.65. The price continued to drop on Tuesday as FIL fell nearly 6% slipping below the 200-day SMA and settling at $4.38. FIL recovered on Wednesday, increasing almost 3% and settling at $4.51. FIL crossed the 200-day SMA on Thursday, rising nearly 7% and settling at $4.80. However, buyers lost momentum on Friday, and FIL registered a marginal decline.
Source: TradingView
Bearish sentiment intensified on Saturday as the price slipped below the 200-day SMA, falling over 9% to $4.36. Sellers retained control on Sunday as FIL dropped nearly 18% to $4.36. Monday’s marketwide collapse dragged FIL to an intraday low of $2.60. However, it recouped some losses, recovering to reclaim $3 and settle at $3.50, down 2.42%. The current session sees the price down by nearly 10% and trading around $3.15. Sellers will look to drive the price below $3. If this level is breached it could lead to a deeper correction, and the price could drop to $2.50.
Arbitrum (ARB) Price Analysis
Arbitrum (ARB) fell below $0.50 over the weekend as markets struggled to recover after Monday’s dramatic collapse. ARB dipped below the 200-day SMA on Monday as it fell to an intraday low of $0.604 before recovering and settling at $0.643, down nearly 5%. Sellers retained control on Tuesday as the price dropped to $0.592 going below the $0.60 support level. However, buyers returned to the market on Wednesday as ARB rose 2.24% to reclaim $0.60 and settle at $0.606. ARB continued to push higher on Thursday, increasing nearly 4% and settling at $0.630. ARB rose to an intraday high of $0.674 on Friday as buyers attempted to move past the 200-day SMA. However, it lost momentum at this level, ultimately rising 1.75% and settling at $0.641.
Source: TradingView
Markets turned bearish on Saturday, and ARB plummeted nearly 10%, slipping below $0.60 and settling at $0.578. Selling pressure intensified on Sunday as ARB dropped almost 15% to $0.493. With the broader markets collapsing on Monday, ARB fell to an intraday low of $0.380. It recovered from this level to register an increase of 3.54% and settle at $0.511. ARB is down over 10% and trading at $0.457.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
