Bitcoin Price Jumps to $102K as US and Mexico Agree to Postpone Trade War

The Bitcoin price has jumped to $102,000 at press time, up over 11% from its Monday low of $91,200.

US President Donald Trump and Mexican President Claudia Sheinbaum have agreed on a short-term deal that will postpone the trade war between both nations by at least a month, a development that sent risk assets soaring.

Trump confirmed that the US will delay its tariffs on Mexico for at least a month, in exchange for Sheinbaum agreeing to take additional steps to curb illegal immigration and drug flow.

The Bitcoin price has jumped to $102,000 at press time, up over 11% from its Monday low of $91,200.

BTC’s recovery, along with relief rallies in altcoins like Fartcoin, Onyxcoin and Hyperliquid, have sparked hopes that the crypto crash is over.

However, the bulls aren’t in the clear just yet.

Why Is Crypto Bouncing Back?

The pattern of Bitcoin swiftly recovering from news-driven dips continues to hold during this bull cycle.

After plunging to $91.2k on the trade war rumours, the Bitcoin price has bounced back to momentarily tag the $102k level, recording a near 12% recovery.

Mexican President Sheinbaum and US President Trump’s “very friendly” conversation sparked the recovery in risk assets, considering the US has now delayed its tariffs on Mexico by a month.

pic.twitter.com/DC5Mx8yCiB

— Donald J. Trump (@realDonaldTrump) February 3, 2025

However, a much larger bullish reason could be at play, considering BTC’s high-volume show of strength.

Donald Trump signed an executive order to create a sovereign wealth fund. The fund will be led by Commerce Secretary Howard Lutnick and Treasury Secretary Howard Lutnick, two of the biggest pro-Bitcoin officials in Trump’s administration, which has sparked rumors that the United States could start buying BTC.

Trump is tasking Howard Lutnick and Scott Bessent with creating a sovereign wealth fund for the United States.

Both are avowedly pro-Bitcoin. https://t.co/q5knKucFoP pic.twitter.com/WFfTtlten2

— Joe Consorti âš¡ï¸ (@JoeConsorti) February 3, 2025

Interestingly, Trump’s crypto czar David Sacks will hold a press conference on Tuesday, outlining the administration’s plan to make the US a leader in the digital asset ecosystem. The timing gives credence to the rumors that BTC could be a part of the newly created sovereign wealth fund.

Pro-BTC Senator from Wyoming Cynthia Lummis has fueled the speculation with her X post.

This is a â‚¿ig deal. https://t.co/ZShfQcEGwc

— Senator Cynthia Lummis (@SenLummis) February 3, 2025

Why The Crypto Crash May Not Be Over?

Despite the recovery, the crypto crash may not be over just yet. For instance, Trump still plans to move ahead with tariffs on Canada and China and is mulling hitting the European Union with a 10% tariff as well.

If a deal doesn’t materialize with the aforementioned nation-states, the crypto market could see more downside volatility.

Additionally, the lack of any announcement regarding the inclusion of BTC in the sovereign wealth fund in David Sacks’ press conference tomorrow could result in a pullback as well.

With $102k and $104k continuing to be key resistance levels, sidelined investors should wait for a much safer entry following their breach.

Best Crypto To Buy Now

Any hint of Bitcoin being included in the US sovereign fund would make Bitcoin the best crypto to buy now.

In the meantime, legendary trader Bluntz believes Dogecoin has completed its A-B-C corrective wave and is now poised for a trend reversal. He is expecting a 2x-3x return from DOGE in the coming weeks.

memes largely out of favour here and getting dunked on big time but with the big dog $doge looking like this, it may be time.

HUGE abc down on daily on usd and btc pair.

potential 2-3x coming up. pic.twitter.com/oAuFaNK7aS

— Bluntz (@Bluntz_Capital) February 3, 2025

The popular trader is also bullish on Chainlink, an altcoin that is also part of Donald Trump’s World Liberty Financial.

However, considering the broader market uncertainty, smart money investors are also betting on low-cap cryptos.

For instance, Meme Index (MEMEX) has caught the attention of investors with its first-ever index fund-like investment vehicle for meme coins.

The project will soon launch four meme coin baskets — Titan, Moonshot, Midcap and Frenzy — each designed for investors with varying risk appetites.

Only MEMEX holders will be able to invest in