The cryptocurrency market saw a notable recovery after U.S. President Donald Trump decided to suspend tariffs on Canada and Mexico, alleviating investor concerns. Ethereum (ETH), which had plummeted 16% within an hour on February 2 following the initial tariff announcement, rebounded strongly to $2,700 after the suspension news broke.
Eric Trump’s social media activity further fueled market sentiment. On February 3, he posted on X (formerly Twitter), stating that it was the “perfect time” to invest in ETH. Interestingly, he later deleted the phrase “You can thank me later” from the post. By the time of his statement, ETH had already surged from its lowest point of $2,368 to a peak of $2,913 before stabilizing at $2,806.
World Liberty Financial’s Crypto Moves
Adding to the bullish momentum, World Liberty Financial (WLF), a financial entity linked to the Trump family, initiated significant cryptocurrency transactions. WLF transferred approximately $307.41 million worth of assets to Coinbase’s custody service and converted 20,000 Lido Staked Ether (stETH) into ETH.
Blockchain analytics firm Spot On Chain revealed that WLF also purchased 1,826 ETH at an average price of $2,738 using $5 million USDC. These funds are expected to support WLF’s upcoming “Earn and Borrow” lending protocol, signaling deeper involvement in the crypto sector.
Ethereum’s Institutional Adoption Gains Momentum
Ethereum’s ecosystem continues to evolve, further strengthening its position in institutional finance. The Ethereum Foundation allocated 50,000 ETH to its treasury to generate staking rewards, a move that Ethereum core developer Eric Conner believes will fund most of the foundation’s budget while reducing market supply.
Meanwhile, a new marketing entity, Etherealize, launched on January 22 to promote Ethereum among Wall Street investors. Institutional recognition of ETH as a viable asset class adds long-term bullish sentiment to the market.
Trump’s tariff suspension, Eric Trump’s endorsement, and institutional involvement have all contributed to Ethereum’s rapid recovery and growing legitimacy. As Ethereum strengthens its presence in traditional finance, its long-term potential appears increasingly promising.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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