Bitcoin Rebounds Above $100K After Trump Pauses Mexico Tariffs

Bitcoin bounced back above $100,000 after a sharp selloff that began over the weekend, during which BTC plunged to $91,229 by Monday morning.

Bitcoin (BTC) recovered from a sharp selloff on Monday, June 22, as several strategic moves by President Donald Trump helped propel the cryptocurrency back above the $100,000 mark.

After announcing tariffs on Mexico and Canada on Saturday, Trump paused their implementation on Monday, a step that calmed investors and helped stabilize risk assets. The tariffs were initially set to take effect on Monday night.

The announcement initially strengthened the U.S. dollar (DXY) while triggering a decline in cryptocurrencies and global equities. Ethereum (ETH) also wavered, falling to $2,100, its lowest since August, but has since rebounded above $2,800.

Cryptocurrencies often react sharply to macroeconomic uncertainty, particularly on weekends when traditional markets are closed. According to Matt Mena, a strategist at 21Shares, Bitcoin serves as an immediate liquidity source during unexpected economic events.

Despite expectations that Bitcoin would act as a store of value, it moved in tandem with risk assets such as stocks on Monday. Major U.S. stock indices declined as well.

The Dow Jones Industrial Average (DJI) fell 0.3%, the S&P 500 (SPX) dropped by 0.8%, and the Nasdaq Composite (IXIC) ended the day 1.2% lower.

Bitcoin's recovery accelerated after Trump signed an executive order to create a U.S. sovereign wealth fund on Monday.

The initiative, to be developed by the Treasury and Commerce departments, aims to strengthen U.S. economic competitiveness, reduce tax burdens on residents, and enhance fiscal sustainability.

While the order does not specifically mention Bitcoin, several crypto analysts speculate that the fund could include digital assets. The White House statement noted that 23 U.S. states already manage $332 billion in sovereign wealth funds, with similar initiatives in countries like the United Kingdom.

According to Treasury Secretary Scott Bessent, the sovereign wealth fund could be established within a year. Notably, the U.S. government is also considering a national digital asset reserve that may include Bitcoin and other cryptocurrencies.

Following these developments, Bitcoin briefly surged to an intraday high of $102,514 on Monday. At press time, the cryptocurrency trades at $99,326, up 6% over the last 24 hours.