Bitcoin traders are catching their breath after one of the wildest weekends in the asset’s history.
The flash crash that occurred Friday evening following Trump’s announcement of 100% tariffs on Chinese imports wiped out nearly $19 billion in crypto positions — the largest single-day liquidation on record.
But some 48 hours later, the market appears more stable, with a rebound taking shape as Washington and Beijing work to ease tensions.
Alternative cryptocurrencies such as And lead the rebound. Both SDA and DOGE gained almost 10% in 24 hours as reduced valuations attracted bargain hunters.
Bitcoin climbed 2.7% in the past 24 hours to around $114,665, while ether jumped 8.3% to $4,135. BNB gained 13.9%, a reminder that liquidity is returning to ecosystem tokens. XRP rose 7.4%, Solana added 7.2%.
The market’s message is clear: the broader uptrend has not broken, but volatility has reset sentiment.
“What we’ve just seen is a massive emotional reset,” said Justin d’Anethan, head of partnerships at Arctic Digital.
“Volatility cuts both ways: traders have been punished on the downside and on the comeback. But the long-term structure is intact. ETF inflows remain strong, FX balances near cycle lows, and the broader narrative is arguably stronger after the washout,” he added.
This washout was no small matter. More than 6,300 wallets have been liquidated on the decentralized Hyperliquid exchange alone, with some traders losing millions in a cascade triggered by automatic deleveraging – a circuit breaker that closes winning positions to cover systemic losses when insurance funds run out.
This ended the bad loans, but also amplified the fall, turning the correction into a structural event.
Tensions between the United States and China ease
The rebound began this weekend when China’s Commerce Ministry clarified that rare earth export controls would not constitute a blanket ban, while Trump himself said that “the United States wants to help China, not harm it.”
Markets interpreted this as a sign that trade war rhetoric was easing, and risk assets rebounded accordingly.
At this point, crypto moves in step with macro again. “If the dispute between the US and China does not escalate into an all-out trade war, the market is likely to recover and return to all-time highs,” said Jeff Mei, COO at BTSE, in a note to CoinDesk.
The path forward will depend on rates and risk appetite. If central banks opt for easing, traders expect ETH and yield-generating tokens to outperform. Funding rates, options skew and whale flows will show where new capital will turn next.
The configuration is volatile, but the conviction remains. I would say the upheaval burned the leverage, not the belief.
