Crypto Market Stabilizes After Trump’s Efforts to Defuse US–China Trade Rift

Major cryptocurrencies rebounded on Monday after a weekend rout worn out billions in leveraged positions, as US President Donald Trump sought to calm market jitters over escalating commerce tensions with China.

Bitcoin climbed 4.5% to $115,459, whereas Ether jumped 11.3% to $4,161. BNB surged almost 1% to $1,304 and XRP gained 10% to $2.56.

The rebound adopted conciliatory remarks from Trump and Vice President JD Vance on Sunday, signaling openness to a commerce compromise with Beijing.

Trump struck a softer tone, calling President Xi Jinping “extremely revered” and saying the US wanted to “help” rather than “hurt” China, regardless of friction over uncommon earth exports and looming tariff will increase.

Leverage Unwind Wiped Out Nearly $20B in Crypto Bets

Markets had been reeling since Friday, when Trump’s announcement of an additional 100% tariffs on Chinese imports sparked a world sell-off.

The sharp decline hit late Saturday, when Bitcoin fell under $110,000 and Ethereum tumbled greater than 20% inside hours. As danger property slid, crypto merchants confronted mass liquidations amplified by skinny liquidity and automatic promoting throughout platforms equivalent to Binance, OKX and Bybit.

Further, the Crypto Fear and Greed Index plummeted from 64, signaling “greed,” to 27, indicating “worry,” in beneath a day. More than 1.6m merchants had been liquidated, with whole losses surpassing $19.3b. Some estimates place the actual determine nearer to $30b, as sure exchanges solely report one liquidation order per second.

Fears of Escalating Trade War Cloud Outlook for Global Growth, Risk Assets Including Crypto

The scale of the losses rivaled the May 2021 crash, when extreme leverage equally fueled a speedy chain response of compelled promoting. Analysts mentioned this newest occasion mirrored the identical structural vulnerabilities in crypto markets of high leverage, restricted liquidity throughout off-hours and reflexive promoting pushed by algorithmic trades.

Greg Magadini, director of derivatives at Amberdata, mentioned the actual concern now lies in whether or not China retaliates. “The danger isn’t the tariffs themselves, it’s whether or not China responds with aggressive countermeasures,” he mentioned. “A full-scale commerce conflict between the world’s two largest economies would create substantial headwinds for international development.”

He added that buying and selling patterns already point out traders are transferring towards safer positions, with indicators of pressure rising throughout a number of asset lessons. “Cryptocurrencies are beneath strain, and the flight to Treasuries displays real issues about financial momentum,” Magadini mentioned.

For now, Trump’s remarks seem to have steadied sentiment. Crypto merchants welcomed the indicators of diplomatic outreach, whilst volatility stays elevated.

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