The Great Crypto Comeback: Bitcoin Hits $99K, XRP Rockets 40% Amidst Mexico-Trump Tango

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. (Place your bets, ladies and gentlemen!)

Stocks Trim Losses as Risk Appetite Returns

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. (The markets, like cats, always seem to land on their feet—most of the time.) 🐱

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. (Cue dramatic music.) 🎶

Closing the Loophole: Ending China’s Trade Advantage

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. (That’s more packages than a postman’s worst nightmare.) 📦
• Chinese retailers paid zero import duties, while American companies faced hundreds of millions in fees. (Fair? Not so much.) 🤔
• U.S. Customs struggled to inspect shipments, allowing counterfeit goods, forced labor products, and fentanyl precursors to enter undetected. (Talk about a Pandora’s box.) 🎁

The Impact of Tariff Reforms

Starting Tuesday, de minimis shipments from China will be banned, forcing imports to undergo standard customs scrutiny (sorry, sneaky packages). 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. (These are the regulations no one knew they needed.)

A Necessary Economic Shift

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. (like ripping off a band-aid really quickly). As global power dynamics shift, America is no longer the world’s enforcer—but a nation willing to protect its own interests first. (Patriots, rejoice.) 🦅

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. (Stay tuned for more plot twists.) 🎢