Bitcoin Surges to $99K, XRP Rockets 40% as Mexico Strikes Trade Deal with Trump

In a bid to ease economic friction, Mexico’s President Claudia Sheinbaum announced on Monday that her government will deploy 10,000 troops to the U.S. border to curb illegal arms and drug trafficking. The move comes as part of an agreement with U.S. President Donald Trump, who, in response, has paused newly imposed tariffs on Mexico for one month—a development that instantly shifted market sentiment.

Bitcoin, which had cratered to $91,300 overnight, staged an aggressive recovery, climbing 1.5% on the day and flirting with the $100K threshold once again. Meanwhile, Ethereum (ETH) rallied above $2,700 after dipping near $2,000, and Solana (SOL) rebounded past $200. 

Bitcoin is back at $99,000, an impressive recovery. Source BLX on Brave New Coin

The standout performer was XRP, which exploded 40%, reclaiming $2.50 after getting battered in the recent correction.

XRP was one of the fastest recovering alts, source XRPLX on Brave New Coin

As of February 3, Bitcoin’s market dominance has surged to nearly 62%, its highest level since February 2021. This metric, which tracks Bitcoin’s share of the total cryptocurrency market cap, underscores BTC’s outsized influence in the space. With Bitcoin commanding the lion’s share, altcoins are left fighting over what’s left—a stark reminder of BTC’s continued supremacy in the market.

Bitcoin dominance has soared while there is still no sign of alt season, Source Trading View

The broader macroeconomic outlook also improved, with Polymarket odds on Trump removing blanket tariffs against Mexico before May surging to 80%, up from just 50% earlier in the day.

The optimism wasn’t limited to crypto. U.S. stock markets pared earlier declines, with the Nasdaq narrowing its losses to just 1%, while the S&P 500 clawed back to a 0.75% drop.

For now, markets appear to be breathing a sigh of relief. But with Trump’s trade policies remaining unpredictable, investors will be watching closely to see if this is a temporary ceasefire—or just the calm before the next storm.

A major focus of Trump’s tariffs is shutting down China’s exploitation of U.S. trade law, particularly the “de minimis” rule, which has allowed Chinese platforms like Temu, SHEIN, and AliExpress to flood the U.S. market with tax-free, duty-free goods under $800.

• Over 1 billion packages from China entered duty-free in 2023.
• Chinese retailers paid zero import duties, while American companies faced hundreds of millions in fees.
• U.S. Customs struggled to inspect shipments, allowing counterfeit goods, forced labor products, and fentanyl precursors to enter undetected.

Starting Tuesday, de minimis shipments from China will be banned, forcing imports to undergo standard customs scrutiny. This move is expected to: Level the playing field for U.S. manufacturers.
Reduce illicit trade, including fentanyl trafficking.
Weaken China’s subsidized export dominance.

For decades, China, Mexico, and Canada have benefited from America’s lack of enforcement on trade rules. The new tariffs signal a reset—one that will bring short-term pain but long-term economic benefits for the U.S. As global power dynamics shift, America is no longer the world’s enforcer—but a nation willing to protect its own interests first.

Finally, it has just been announced that President Trump’s AI & Crypto Czar, David Sacks, will host a press conference on Feb. 4, 2:30 pm ET about digital assets and how America will secure its position as leader. That’s perhaps a reaction to the crypto dump, and an acknowledgment that the Trump administration wants to support the industry and stem the losses from yesterday’s liquidation event.

David Sacks, Source: X