The cryptocurrency market experienced a rebound after showing strong declines, with Cardano being the cryptocurrency that recorded the highest gain at 6%, and Ripple rising by 2.8%. The latest actions by President Trump triggered a domino effect in this market, where besides Bitcoin, other cryptocurrencies such as Solana, Cardano, Ethereum, and Dogecoin also experienced significant drops in their prices.
In a scenario of global tension, investors sought safe havens, which boosted the recovery of digital assets. Bitcoin managed to stay above $87,700, recovering from a drop of nearly 13%. Despite investor fears about the potential impact of escalating trade tensions between the United States and its partners on the economy, cryptocurrencies managed to regain positions.
The initiation of U.S. tariffs on imports from Mexico and Canada, along with increased taxes on Chinese products, triggered a chain reaction that affected the cryptocurrency market. China responded with additional tariffs on U.S. imports, while Canada and Mexico have promised to take similar actions, which could jeopardize annual bilateral trade of nearly $2.2 trillion.
In this context, Bitcoin, as the market leader, surged by 1.4% reaching the $88,000 zone, while Ethereum fell by 0.5% to $2,167. The uncertainty generated by the geopolitical situation has impacted the volatility of cryptocurrencies, which seek to maintain their position in a market influenced by external factors.
