- The crypto market staged a recovery after last weekend’s sharp decline.
- Bitcoin climbed above $100,000 before the close of Monday’s trading session.
- The crypto market’s recovery reflects confidence among investors.
The cryptocurrency market recovered from the weekend’s sharp drop with an overnight rally that saw a $220 million inflow into the crypto ecosystem. Bitcoin, the flagship crypto, led the recovery by climbing above $100,000, re-establishing bullish confidence among crypto users who expect prices to climb higher.
President Donald Trump’s policies announced last week triggered the price tumble the crypto market experienced over the weekend. Bitcoin plunged to $91,530 by early Monday morning. However, it recovered from Monday’s decline to surge past $100,000, hitting a daily high of $102,569 before closing at $101,457.
Tariff Pause Eases Trade Tensions
On Monday, Trump backtracked on his increased tariff policy toward Mexico, suspending implementation and opening the situation up for negotiation between the two countries. According to reports, Trump and Mexico’s President Claudia Sheinbaum agreed to pause the US-Mexico tariff for one month. Mexico will send 10,000 guard troops during this period to help secure the border.
Related: Trump’s Economic Proposals: Tariffs, Tax Cuts, and Global Tax Withdrawal
President Trump noted that officials from both sides will engage in negotiation. The President appointed Secretary of the Treasury Scott Bessent and Secretary of State Marco Rubio to represent the US in negotiating with Mexico.
Broad Crypto Recovery and Market Momentum
Besides Bitcoin, other top cryptocurrencies recovered from last weekend’s losses. TradingView’s data show that Ethereum recovered from Monday’s intraday decline by rallying 36.3%. The top altcoin closed Monday’s trading session at $2,883 after slipping to $2,150 earlier in the day. Solana recovered after dropping to $176 early Monday morning, reaching a $218.97 daily high before closing the session at $216.48.
Related: Crypto Market Recovers Sharply: Tariff Concerns Easing
Even though the crypto market posted a significant recovery, it has not yet fully rebounded from the weekend’s decline, which erased $2 billion from the crypto derivatives market following Trump’s initial tariff announcement. This recovery pattern demonstrates how crypto bulls rejected the drop, hinting at the market’s potential to climb higher after reclaiming key support levels.
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