Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Major cryptocurrencies rebounded on Monday after a weekend rout wiped out billions in leveraged positions, as US President Donald Trump sought to calm market jitters over escalating trade tensions with China.
Bitcoin climbed 4.5% to $115,459, while Ether jumped 11.3% to $4,161. BNB surged nearly 1% to $1,304 and XRP gained 10% to $2.56.
The rebound followed conciliatory remarks from Trump and Vice President JD Vance on Sunday, signaling openness to a trade compromise with Beijing.
Trump struck a softer tone, calling President Xi Jinping “highly respected” and saying the US wanted to “help” rather than “hurt” China, despite friction over rare earth exports and looming tariff increases.
Leverage Unwind Wiped Out Nearly $20B in Crypto Bets
Markets had been reeling since Friday, when Trump’s announcement of an extra 100% tariffs on Chinese imports sparked a global sell-off.
The sharp decline hit late Saturday, when Bitcoin fell below $110,000 and Ethereum tumbled more than 20% within hours. As risk assets slid, crypto traders faced mass liquidations amplified by thin liquidity and automated selling across platforms such as Binance, OKX and Bybit.
Further, the Crypto Fear and Greed Index plummeted from 64, signaling “greed,” to 27, indicating “fear,” in under a day. More than 1.6m traders were liquidated, with total losses surpassing $19.3b. Some estimates place the real figure closer to $30b, as certain exchanges only 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 excessive leverage similarly fueled a rapid chain reaction of forced selling. Analysts said this latest event reflected the same structural vulnerabilities in crypto markets of high leverage, limited liquidity during off-hours and reflexive selling driven by algorithmic trades.
Greg Magadini, director of derivatives at Amberdata, said the real concern now lies in whether China retaliates. “The risk isn’t the tariffs themselves, it’s whether China responds with aggressive countermeasures,” he said. “A full-scale trade war between the world’s two largest economies would create substantial headwinds for global growth.”
He added that trading patterns already indicate investors are moving toward safer positions, with signs of strain emerging across multiple asset classes. “Cryptocurrencies are under pressure, and the flight to Treasuries reflects genuine concerns about economic momentum,” Magadini said.
For now, Trump’s remarks appear to have steadied sentiment. Crypto traders welcomed the signs of diplomatic outreach, even as volatility remains elevated.
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