Crypto Market Rebounds 5% as U.S.–China Trade Tensions Ease and $550B Flows Back In

Crypto snapped again on Monday as a diplomatic cool-down between Washington and Beijing helped erase a part of Friday’s historic wipeout. Total crypto market cap jumped roughly 5%, with over $550 billion flowing again into digital property after a panic sparked by discuss of 100% U.S. tariffs on Chinese items.

Bitcoin (BTC) reclaimed $115,000 (+3%), Ethereum (ETH) climbed to $4,142 (+8.2%), and XRP traded close to $2.54. High-beta majors joined the rebound: BNB surged 14% and Solana (SOL) gained 7%.

Trade War Fears Ease as China Clarifies Export Rules and Trump Softens Tone

The bid returned as China’s Ministry of Commerce clarified its rare-earth export controls are authorized however not a ban, with compliant civilian purposes to be authorized. President Donald Trump additionally struck a extra conciliatory tone, posting that the U.S. needs to “assist China, not damage it,” easing fears of a near-term commerce conflict escalation.

The shift follows the biggest crypto liquidation on document, over $19–$20 billion in 24 hours, as over-levered longs have been flushed in Friday’s cascade. Prediction markets now value sharply decrease odds of full tariffs by Nov. 1, aligning with Monday’s broad risk-on bounce.

Institutions Buy The Dip As ETF Momentum Steadies

From a deeper perspective, the flows stayed constructive. Spot Bitcoin ETFs noticed solely minor each day outflows ($4.5M on Friday) and stay internet optimistic by practically $6B for October, signaling persevering with institutional demand through regulated autos.

On-chain watchers additionally flagged Marathon Digital including 400 BTC ($46M) by FalconX in early Monday commerce, in line with treasuries opportunistically accumulating into weak point.

Sentiment gauges improved from “excessive concern,” whereas social information on Stocktwits flipped bullish for BTC, with some merchants eyeing a retest of $140K if macro tailwinds persist.

Levels To Watch: Support, Resistance, And Catalysts

Technically, BTC’s swift restoration locations $114,000–$117,000 as near-term help, with resistance layered round $121,000–$126,000 (the latest ATH zone). ETH faces provide close to $4,200–$4,300, whereas XRP watchers spotlight $2.60–$2.65 as a hurdle to unlock momentum towards $3.00.

Macro stays the important thing swing issue, as any renewed tariff saber-rattling or U.S. information surprises (particularly amid a patchy government-statistics calendar) may reignite volatility.

Conversely, sustained ETF inflows, enhancing liquidity, and calmer U.S.–China rhetoric proceed to help a base-building surroundings heading into This fall.

Cover picture from ChatGPT, BTCUSD chart from Tradingview