Bitcoin has climbed above $100,000 after a sudden easing of trade tensions between the U.S., Mexico, and Canada. The price bounced sharply as markets reacted to agreements U.S. President Donald Trump made with Mexico and Canada.
Mexico’s President Claudia Sheinbaum agreed to deploy troops to the U.S.-Mexico border to combat arms and drug trafficking. In response, the U.S. paused tariffs on Mexican imports for one month. Meanwhile, Canada’s Prime Minister Justin Trudeau also spoke with Trump and committed to strengthening the U.S.-Canada border to fight organized crime, fentanyl trafficking, and money laundering. As a result, the U.S. also postponed tariffs on Canadian imports for 30 days.
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, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
These developments reassured investors, and Bitcoin responded by climbing past $100,000. At the time of writing, Bitcoin is trading at $100,366, up 7.4% in the past 24 hours, according to CoinMarketCap.
Another factor driving the rally is Trump’s executive order to create a U.S. sovereign wealth fund. This move has sparked speculation that Bitcoin could play a role in the fund’s strategy, adding to bullish momentum.
The quick price jump shows how global events can affect Bitcoin. When uncertainty fades, investors often feel more confident, leading to price increases. Bitcoin has long been seen as a hedge against economic instability, and in times of financial or political shifts, it often reacts strongly.
For those new to Bitcoin, it’s worth noting that its price is highly sensitive to major news. Whether it’s government policies, economic data, or geopolitical events, Bitcoin’s value can move quickly in response. This makes it an exciting but sometimes volatile asset.
What Bitcoin will do next is depending on how markets digest the latest developments. If tensions ease further or if more clarity emerges about Trump’s economic plans, we could see even more interest in Bitcoin. But as always, staying informed is key, which you can do by following us here at HowToBuyBitcoin.org for all the latest news and updates on Bitcoin!