Bitcoin rebounded to above $100,000 by Monday evening, after President Donald Trump said he would pause imposing tariffs on Mexico and Canada. 

Bitcoin has been trading mostly in tandem with risk assets for the past few years.

Bitcoin, the largest cryptocurrency by market capitalization, experienced a weekend selloff, falling to as low as $91,229 early Monday, its lowest level since Jan. 13, according to Dow Jones Market Data.

Tariffs on Canadian, Mexican and Chinese imports, first announced Saturday, had been originally set to go into effect after midnight Monday. That sent the U.S. dollar higher, while cryptocurrencies tumbled and Asian equities fell. 

Ether also dropped, falling to as low as $2,814 early Monday, its lowest level since Aug. 5, 2024, before it recouped some losses to recently trade at $2,881.

Cryptocurrencies tend to lead the selloff of risk assets during periods of macroeconomic uncertainty, especially during weekends, according to Matt Mena, crypto research strategist at 21Shares.

As digital assets trade 24 hours a day, seven days a week, it “makes them an immediate source of liquidity when unexpected geopolitical or economic events arise,” Mena said. “This effect is particularly pronounced on weekends when traditional markets are closed, often leading to exaggerated price moves in crypto,” Mena added. 

U.S. stocks ended lower on Monday, though they were off session lows. The Dow Jones Industrial Average finished down 0.3% and the S&P 500 closed 0.8% lower. The Nasdaq Composite ended 1.2% lower. 

While many bitcoin bulls had hoped that the crypto could serve as a store of value, it has been mostly trading in tandem with risk assets, especially tech stocks. 

“Bitcoin and crypto markets are a good reflection of risk-on sentiment in the near term,” Gautam Chhugani, senior analyst of global digital assets at Alliance Bernstein, wrote in a note.

“If tariffs mean stronger dollar, higher inflation and reduced prospects of rate cuts in the short term, it means lower global liquidity for risk-on assets,” Chhugani said.