Bitcoin and Other Major Cryptocurrencies Rose on Tuesday Amid a Positive Market Reaction to US President Donald Trump's Decision to Postpone the Introduction of New Duties on Canada and Mexico

By 01:05 EDT (06:05 GMT), bitcoin had added 5.6% to reach $99,327.5. After the announcement of the postponement of the duties, its price rose above $100,000 on Monday evening.

Major cryptocurrencies rose on Tuesday, as markets reacted positively to U.S. President Donald Trump's decision to delay the implementation of new tariffs on Canada and Mexico. Another factor underpinning the gains was buying on the dip.

Bitcoin was up 5.6% at $99,327.5 by 01:05 ET (06:05 GMT).

It briefly topped the $100,000 mark on Monday evening following the announcement of the tariff delay.

The initial announcement of a planned 25% tariff on imports from Canada and Mexico, as well as a 10% duty on Chinese goods, sparked a broad sell-off in risky assets on Friday, with bitcoin and other digital currencies plunging sharply as investors rushed to cash out.

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But on Tuesday night, Trump agreed to delay the tariffs for 30 days.

Bitcoin had earlier dropped as low as $91,695.8 on Monday, while ether at one point slumped over 20% to as low as $2,261.27. On Tuesday, however, ether rose 7.6% to trade at $2,704.1.

The cryptocurrency market has traditionally served as a barometer of macroeconomic anxiety, with traders seeking liquidity during periods of market stress.

Due to being traded around the clock, cryptocurrencies also offered an avenue for quick asset adjustments, especially over weekends when traditional financial markets remained shut.

With the immediate threat of tariffs receding for now, investors returned to buying, which helped to stabilize the crypto market. But analysts cautioned that its vulnerability to geopolitical events remained.

If tariffs on Chinese imports were imposed or new trade measures were introduced, they could stall the gains in cryptocurrencies.

Most altcoins also resumed their rally on Tuesday, having shed around 20% in the previous session.

XRP, the third-largest cryptocurrency by market capitalization, gained about 13% to trade at $2.5897. Solana advanced 5.1%, while Polygon and Cardano both rose over 10%.

Among meme coins, Dogecoin soared 11.4%, while $TRUMP, a Trump-related meme token, slipped about 1.3% to end at $17,603 on Monday after hitting a record low of $16,349.

Earlier in the week, the cryptocurrency market witnessed steep losses, with bitcoin hitting its lowest level in three weeks on Monday. Investors reacted to the heightened risk of a trade war, which sparked a broad sell-off in financial markets.