Investing.com-- Bitcoin and other major cryptocurrencies recovered on Tuesday as markets cheered U.S. President Donald Trump’s decision to postpone new tariffs on Canada and Mexico, while dip buyers also pushed prices higher.
Bitcoin rose over 2% to $99,142.0 by 10:36 ET (15:36 GMT).
Following the announcement of the tariff delay, Bitcoin’s price rose above $100,000 on Monday evening.
Trump’s tariff delays alleviate liquidity concerns
The initial announcement of a 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods had triggered a broad selloff across risk assets, with Bitcoin and other digital currencies seeing sharp declines as investors sought to preserve cash.
However, overnight Trump agreed to postpone the tariffs on Mexico and Canada by 30 days.
Bitcoin had dropped to as low as $91,695.8 on Monday, while Ethereum had fallen over 20% to $2,261.27.
Ethereum rose over 3% to $2,786.93.
Cryptocurrencies often react to macroeconomic uncertainties, with traders seeking liquidity during times of market stress.
The 24/7 nature of crypto trading makes it a readily available asset class for such liquidity needs, especially during weekends when traditional markets are closed.
With the immediate threat of trade disruptions reduced, traders have resumed buying, helping stabilize the crypto market.
Despite the recent recovery, analysts caution that the cryptocurrency market remains vulnerable to ongoing geopolitical developments.
If tariffs on China proceed as planned or if new trade restrictions emerge, the risk of slower global growth and reduced liquidity could weigh on cryptocurrencies in the coming months.
Senator Bill Hagerty to introduce stablecoin bill, Bloomberg reports
Republican Sen. Bill Hagerty is set to introduce a bill on Tuesday to establish a regulatory framework for stablecoins, Bloomberg reports.
Hagerty described the proposal as a “safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto.” The bill, named the "Guiding and Establishing National Innovation for US Stablecoins", would require stablecoin issuers to back payments with Treasury bills, U.S. dollars, and Federal Reserve notes while mandating monthly audited reports.
Sens. Kirsten Gillibrand (D-N.Y.), Tim Scott (R-S.C.), and Cynthia Lummis (R-Wyo.) are co-sponsoring the bill, according to the report.
In October 2024, Hagerty released a discussion draft similar to the House’s "Clarity for Payment Stablecoins Act" developed by Rep. Maxine Waters (NYSE:WAT) (D-Calif.) and former House Financial Services Committee Chair Patrick McHenry (R-N.C.). It remains unclear how closely the new bill aligns with that earlier draft.
Crypto price today: XRP, SOL rise as dip buyers emerge
Most altcoins climbed back on Tuesday after most dropping around 20% in the previous session.
World no.3 crypto XRP surged jumped more than 5% to $2.637.
Solana climbed 2.5%, while Polygon fell 1.9%, and Cardano traded relatively flat.
Among meme tokens, Dogecoin fell marginally, while President’s meme coin $TRUMP was 7.5% weaker at $17.56 after reaching a record low of $16.349 on Monday.
Ayushman Ojha contributed to this report.