Many altcoins rise more than 40% after Trump's decision

On the evening of February 3, 2025, the United States made a significant move in trade policy, with the decision to postpone the imposition of tariffs on Mexico and Canada for 30 days.

U.S. President Donald Trump had private discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, leading to his decision to suspend tariff hikes aimed at easing trade tensions.

Earlier, Mexico imposed retaliatory tariffs after the US decided to impose a 25 percent tariff on imports from Mexico.

Sheinbaum announced that Mexico would deploy a plan to send 10,000 National Guard troops along its border with the United States to combat fentanyl smuggling, while the United States pledged tighter controls on the smuggling of weapons into Mexico.

At the same time, Trudeau also confirmed that he would deploy nearly 10,000 troops at the Canadian border to bolster security.

The leaders of Mexico and Canada have both insisted that dialogue and cooperation measures are the right way to solve the problem, rather than punitive tariffs. This information has had an immediate positive effect on the financial markets, including the crypto market.

After a sharp drop on the morning of February 3, the crypto market made an impressive recovery on February 4. BTC bounced sharply from the $91,000 bottom to $102,500, representing a gain of about 12.6% within 24 hours of the bottom.

This strong rebound came after a massive sell-off that wiped out a series of long orders, but soon after, the buying momentum returned to pull BTC back to the region above $100,000.

Along with BTC's rebound, the altcoin market also saw significant gains as the altcoin as a whole bounced between 15-20% from the February 3 low. Some of the altcoins with the strongest gains during this recovery include OM (+29.3%), ENA (+22.1%), XCN (+20.9%), HEX (+19%), and XRP (+19.1%).

Ethereum was also not out of the trend as it rose from a low of $2,100 to $2,900, representing a 38 percent gain, representing a strong return of cash flow across the market.

In the last 12 hours, the market recorded a total liquidation volume of $1.68 billion, including $1.22 billion from long orders and $466 million from short orders. The largest liquidation order came from the BTC-USDT pair on the IPO with a value of up to $38.78 million.

The combination of excessive liquidation, strong rebound, and positive signals from the political situation gave the crypto market a strong bounce, sending BTC back to the region above $100,000 and helping the altcoin grow strongly after a deep decline.