Bitcoin and other major cryptocurrencies steadied after a weekend of panic selling and record liquidations. The flash crash, triggered by President Trump’s 100% tariff announcement on Chinese imports, erased nearly $19 billion in crypto positions on Friday, marking the largest single-day wipeout on record.
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However, just 48 hours later, the market began to stabilize as both Washington and Beijing moved to cool trade tensions. This shift in tone helped restore confidence across digital assets and drew traders back into the market.
Bitcoin rose 2.7% to around $114,600, while Ethereum climbed 8.3% to $4,135. In addition, altcoins saw even sharper rebounds, with Cardano (ADA-USD) and Dogecoin (DOGE-USD) each surging nearly 10% in 24 hours as investors seized discounted opportunities.
BNB advanced 14%, while XRP (XRP-USD) and Solana (SOL-USD) each added over 7%, signaling that capital was rotating back into high-beta tokens.
“The market just went through a massive emotional reset,” said Justin d’Anethan, head of partnerships at Arctic Digital. “Volatility cuts both ways. Traders were punished on the way down and on the snap back. But the longer-term structure is intact. ETF inflows remain strong, exchange balances near cycle lows, and the broader narrative is arguably stronger after the washout.”
Cardano and Dogecoin Drive Post-Crash Momentum
Cardano and Dogecoin, two of the most sentiment-driven assets in the crypto sector, led the recovery as traders rushed to buy the dip. Their strong rebounds showcase that optimism among retail and institutional investors remains high despite recent turbulence.
Moreover, analysts said the size of the liquidations may have cleared the way for a more stable uptrend. More than 6,300 wallets were liquidated on the decentralized exchange Hyperliquid, with some traders losing millions as auto-deleveraging triggered a cascade of forced sales.
Although the mechanism prevented systemic losses, it deepened the fall and turned what might have been a typical correction into a full-blown structural reset. As liquidity returned to exchanges, funding rates normalized and open interest began to recover, signaling that speculative excess had been purged.
Trade Tensions Ease as Crypto Tracks Global Recovery
The market’s rebound gained traction once China’s Ministry of Commerce clarified that new rare-earth export restrictions would not amount to a full ban. This reduced fears of a prolonged U.S.–China trade conflict and lifted risk appetite globally.
President Trump also wrote that “the U.S.A wants to help China, not hurt it,” a comment traders read as a sign of easing tensions. Consequently, both equity and crypto markets rallied in tandem.
“With the U.S.–China spat showing signs of cooling, risk assets are recovering in tandem,” said Jeff Mei, chief operating officer at BTSE. “If tensions don’t escalate into a full-on trade war, crypto could push back toward all-time highs.”
Sentiment Resets while Conviction Holds Firm
The past week’s volatility erased leverage across exchanges but left long-term confidence untouched. Institutional inflows through ETFs remain strong, while exchange reserves hover near multi-year lows, indicating continued accumulation.
Furthermore, if global interest rates start to decline, traders expect yield-generating tokens such as Ether to outperform. Market data also shows that new inflows are returning, led by whales and funds repositioning for the next rally.
In the end, the weekend’s chaos may come to be remembered less as a collapse and more as a cleansing event. The crash burned off excess speculation, restored balance, and reaffirmed that belief in the crypto cycle is stronger than any single bout of volatility.
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