Bitcoin Rockets Past $100K as Trade Tensions Cool and Markets Rebound

Bitcoin Surges Past $100K Amid Eased Trade Tensions

According to CoinDesk, Bitcoin (BTC) experienced a significant rebound, surpassing $100,000 after a sharp decline to $91,300. This recovery was fueled by Mexico's agreement to deploy 10,000 troops to the U.S. border to curb illegal arms and drug trafficking, leading to a temporary pause in tariffs by the U.S. administration. Additionally, President Donald Trump signed an executive order to establish a U.S. sovereign wealth fund, further boosting market sentiment. XRP also saw a remarkable 40% surge, reaching $2.7, while Solana (SOL) climbed to $210, erasing overnight losses.

Polymarket data revealed an 80% probability that Trump would lift blanket tariffs on Mexico before May, up from 60% earlier. Analysts from Bitfinex noted that Bitcoin's structural strength remains intact despite short-term volatility, highlighting its resilience amid macroeconomic uncertainties.

Source: CoinDesk (https://www.coindesk.com/markets/2025/02/03/bitcoin-bounces-above-usd99k-xrp-surges-40-as-trade-war-tensions-suddenly-ease)

Trump's Tariff Threat Shakes Crypto Markets

The Seattle Times reported that cryptocurrency markets faced turbulence following President Trump's announcement of tariffs on goods from Canada, Mexico, and China. Bitcoin dropped from $105,000 to $92,000 before rebounding above $100,000 after a temporary tariff pause on Mexican and Canadian goods. Ethereum and other cryptocurrencies, including Trump's own meme coin, experienced significant losses, with the latter trading at $19, a 75% drop from its peak.

Trump's policies have positioned the U.S. as a crypto-friendly nation, with Bitcoin maintaining its status as a global macro asset. However, the volatility highlights the risks associated with cryptocurrencies, especially meme coins, which are highly speculative.

Source: The Seattle Times (https://www.seattletimes.com/business/trumps-tariff-threat-sends-crypto-prices-falling/)

Ethereum Faces Challenges Amid Market Decline

Fortune highlighted Ethereum's struggles as its price fell below $100,000 due to tariff concerns. XRP also dropped by 33%, reflecting the broader market downturn. The decline in Ethereum's revenue, exacerbated by reduced transaction fees following the March Dencun upgrade, has allowed competitors like Solana and Hyperliquid to gain traction. Hyperliquid, a new layer-1 network, surpassed Ethereum in seven-day revenues, generating $12.8 million compared to Ethereum's $11.5 million.

Despite these challenges, Ethereum remains a dominant player in the blockchain space, with efforts underway to enhance its ecosystem and maintain its competitive edge.

Source: Fortune (https://fortune.com/crypto/2025/02/03/bitcoin-plunges-tariff-worries-xrp-ethereum-falls/)

Hyperliquid Outpaces Ethereum in Revenue

Cointelegraph reported that Hyperliquid, a layer-1 blockchain network focused on derivatives trading, has overtaken Ethereum in seven-day revenues, recording $12.8 million compared to Ethereum's $11.5 million. The network's rapid growth is attributed to its efficient transaction settlements and low fees, making it a preferred platform for perpetual futures trading. Hyperliquid's HYPE token has also seen a 500% increase since its launch, with a fully diluted valuation of $25 billion.

While Hyperliquid's rise is notable, its limited developer community and reliance on a single revenue stream pose challenges. Plans to launch an Ethereum Virtual Machine smart contract platform aim to diversify its offerings and sustain growth.

Source: Cointelegraph (https://cointelegraph.com/news/hyper-liquid-flips-ethereum-7-day-revenues)

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