Bitcoin Recovers After Tariff Delays, But Uncertainty Remains

Washington, D.C. – Bitcoin’s price rebounded after the U.S. delayed tariffs on Mexico and Canada, but concerns over trade policies are still affecting the market. While these delays eased some fears, new tariffs on Chinese imports and China’s countermeasures continue to create uncertainty.

Bitcoin’s Price Movement

On Monday, Bitcoin dropped to $92,900 due to market concerns over trade tensions. However, after the U.S. announced a 30-day delay on tariffs for Mexico and Canada, Bitcoin’s price recovered, reaching $102,000 before stabilizing around $99,500 by Tuesday afternoon. This represents a 0.7% increase in the last 24 hours.

While the delay prevented an immediate trade war between the U.S. and its North American neighbors, China responded to U.S. tariffs by imposing its own taxes of up to 15% on American products like natural gas and pickup trucks. These ongoing tensions are keeping financial markets, including Bitcoin, on edge.

Inflation Concerns and Market Reactions

According to Geoff Kendrick, head of digital asset research at Standard Chartered, inflation expectations have increased due to trade uncertainty. Data from the U.S. bond market shows that the two-year breakeven inflation rate on Treasury Inflation-Protected Securities (TIPS) rose from 2.95% to 2.98% on Tuesday, indicating concerns that inflation will remain high.

The Federal Reserve has previously warned that changes in trade policies could make it harder to bring inflation down to its 2% target. As a result, investors are closely watching the bond market to see if inflation fears ease or if concerns about slower economic growth take over.

Future Trade Uncertainty

Despite the temporary relief, more trade conflicts could be ahead. President Donald Trump has indicated that the European Union will also face tariffs soon, though no specific timeline has been given.

Market analysts believe that until the U.S. bond market signals a shift in investor concerns—from inflation to economic growth—Bitcoin’s price may remain unstable. The uncertainty surrounding trade policies, especially potential tariffs on BRICS nations and European countries, could continue to impact financial markets.

For now, Bitcoin and other cryptocurrencies are reacting to shifting trade dynamics, but the long-term impact of these policies remains unclear.