The post Trump Halts Tariffs, Launches Wealth Fund appeared on BitcoinEthereumNews.com.

Bitcoin surged above $100,000 after falling to $91,229 amid tariff concerns. Trump paused tariffs on Mexico and Canada, easing market fears. A U.S. sovereign wealth fund proposal fuels speculation about government Bitcoin holdings. 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. The rebound followed several strategic moves by President Donald Trump over the last 24 hours. They include his decision to pause tariffs on Mexico and Canada, a step that calmed investors and helped steady risk assets. The tariffs, originally announced on Saturday, were set to take effect 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.  Related: BlackRock’s Bitcoin ETF Experiences Massive Outflows Stock Markets Follow Bitcoin’s Lead 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 (DJIA) fell 0.3%, the S&P 500 (SPX) dropped 0.8%, and the Nasdaq Composite (COMP) ended the day 1.2% lower. Trump’s Sovereign Wealth Fund Sparks Further Crypto Rebound Meanwhile, Bitcoin’s recovery accelerated after Trump signed an executive order directing the creation of a U.S. sovereign wealth fund. The Treasury and Commerce departments will develop the initiative. It aims to strengthen U.S. economic competitiveness, reduce tax burdens on residents, and enhance fiscal sustainability. Though the order doesn’t mention Bitcoin specifically, many crypto…

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Filed under: News - @ February 4, 2025 2:22 pm