Ethereum Surges After Trump Suspends Tariffs
Following President Trump’s decision to pause the implementation of tariffs on Canada and Mexico, the cryptocurrency market, particularly Ethereum, has experienced a significant rebound. Over the past 24 hours, Ethereum has seen an impressive growth of 8%. Notably, Eric Trump, the president’s son, has even suggested that now is a good time to invest in ETH. Let’s delve into the details!
Impact of Trump’s Tariff Pause on Ethereum
On February 1, 2025, President Trump initially announced plans to impose tariffs on Mexico and Canada. This led to a sharp decline in the price of Ethereum, which stood at $3,301.00 at the beginning of the month. Within the first two days, Ethereum witnessed a significant drop of 13.103%, resulting in an overall decline of 18.52% since the start of February.
However, the market began to show signs of recovery after the White House indicated a halt in the tariff proceedings. Just yesterday, Ethereum saw a modest growth of 0.19%, followed by a remarkable 8% surge in the last 24 hours.
Eric Trump’s Endorsement of Ethereum
Eric Trump’s recent endorsement of Ethereum caught the attention of many. In a social media post, he recommended buying Ethereum, which was initially accompanied by a confident statement, “You can thank me later.” Although the statement was later toned down, Eric Trump’s endorsement sparked a wave of reactions in the crypto community.
World Liberty Financial’s Crypto Moves
World Liberty Financial, a decentralized finance (DeFi) project associated with the president’s family, has been making significant moves in the crypto space. The project recently transferred $307.41 million to Coinbase custody, unstaked 20,000 Lido Staked ETH into regular ETH, and acquired 1,826 ETH in exchange for $5 million USDC. These moves are believed to be in preparation for the launch of Earn and Borrow, a lending protocol by WLF.
Ethereum vs. Bitcoin Price Trend
An interesting trend has emerged when comparing the prices of Bitcoin and Ethereum. Each time Bitcoin reached the $100,000 milestone, Ethereum’s price exhibited a downward trend. For instance, when Bitcoin hit $100K, Ethereum’s price was at $3,900. Subsequent milestones for Bitcoin corresponded to lower Ethereum prices, indicating a potential underperformance of ETH compared to BTC during major rallies.