Bitcoin Breaks Through $100K, XRP Leaps 40% as Trade War Fears Ease

Crypto Markets Recover as U.S.-Mexico Trade War Fears Fade; Bitcoin Surpasses $100K, XRP Soars 40%

Cryptocurrency markets rebounded sharply on Monday, with Bitcoin (BTC) surpassing the $100,000 mark as trade war fears eased after a key deal was reached between Mexico and U.S. President Donald Trump.

Mexican President Claudia Sheinbaum announced that Mexico would deploy 10,000 troops to the U.S. border to curb illegal arms and drug trafficking. She also confirmed that the U.S. would hold off on imposing tariffs for a month, leading to a marked shift in market sentiment. On prediction platform Polymarket, the probability that Trump would remove tariffs against Mexico before May skyrocketed to 80%, up from around 50% earlier in the day.

In addition, President Trump signed an executive order to establish a U.S. sovereign wealth fund, further boosting crypto markets. The Treasury and Commerce Departments, led by pro-crypto figures, are set to oversee the fund, which could pave the way for the U.S. government to invest in and hold digital assets.

Bitcoin saw a dramatic surge, climbing to nearly $102,000 from a low of $91,300 earlier in the day, a 3.5% increase. XRP spiked 40%, recovering all its previous losses to reach $2.70. Solana’s SOL also made impressive gains, rising more than 5% to $210. Ethereum’s ether (ETH) surged above $2,700, bouncing back from $2,000, though it still remained 7% lower over the past 24 hours.

In the stock market, U.S. equities recovered some ground. The Nasdaq closed 1.2% lower, while the S&P 500 finished down 0.76%.

Bitfinex analysts observed that Bitcoin’s initial drop was amplified by its nature as a tail-risk asset, which tends to experience steeper declines during periods of weakened market sentiment. However, despite this short-term volatility, analysts noted that Bitcoin is showing structural strength over longer timeframes, suggesting it remains in a solid upward trend, even amid broader market corrections.