BTC price reached $99,500 at the time of this writing, raising hopes for a V-shaped recovery. For a similar recovery to occur, we would need to see Trump backtrack from his aggressive stance, something that has been witnessed recently. Trump’s abrupt measures may be aimed at demonstrating the severity of the ongoing crises.
Why Are Cryptocurrencies Rising?
The additional customs duties present a challenging situation for both the U.S. and its trading partners. Countries forced to halt trade with the U.S. are likely to suffer economically. The circumstances facing Canada, Mexico, and China necessitate reaching a consensus, but Trump’s significant demands complicate this process.
Currently, issues with Mexico appear to be resolving. Among the three countries, Mexico has the weakest economy and was under pressure to reach an agreement. Following Trump’s announcement regarding an accord, BTC and cryptocurrencies began to rise again.
“I just spoke with Mexican President Claudia Sheinbaum. The soldiers will be specifically assigned to stop the flow of fentanyl and illegal migrants into our country. I look forward to participating in negotiations with President Sheinbaum to achieve an ‘agreement’ between the two countries.”
A Canadian government official recently expressed little hope for a way out. China has yet to come to the negotiating table. In the coming days and hours, news of agreements could accelerate the upward trend.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
