Bitcoin Rebounds After Record Liquidation as Markets Calm on Softer Trade Tone

Bitcoin rebounded sharply on Monday, climbing back above $115,000 after suffering the largest single-day liquidation in crypto history late last week, when escalating U.S.-China trade tensions triggered a massive sell-off across digital assets.

The world’s biggest cryptocurrency rose 3.1% to $115,107.60 by 06:32 GMT, recovering part of its losses after plunging as low as $103,893.3 on Friday—down from above $122,000 earlier that same day. The token had reached a record high above $126,000 just a week earlier.

Record $19 Billion Liquidation Fueled by Tariff Shock

The crash followed President Donald Trump’s announcement of new 100% tariffs on Chinese goods, along with tighter export controls on strategic technologies. The news sparked a wave of panic selling and triggered automatic margin calls and stop-loss orders across exchanges, resulting in nearly $19 billion worth of crypto positions being wiped out in 24 hours—the largest one-day liquidation event ever recorded.

More than 1.6 million trading accounts were closed out, according to data providers, as cascading liquidations swept across major exchanges including Binance, Bybit, and Hyperliquid. Other major tokens mirrored Bitcoin’s plunge, deepening the market rout.

Beijing’s sharp response—vowing to take “necessary countermeasures” and asserting it was “not afraid” of a trade war—added to the panic. However, Trump’s weekend remarks urging markets to “not worry about China” and signaling that no immediate escalation was planned helped stabilize sentiment on Monday.

Crypto Markets Mirror Global Risk Trends

The extreme volatility underscored how closely cryptocurrencies are now tracking macroeconomic and geopolitical developments. Once touted as a hedge against global uncertainty, Bitcoin and other digital assets have increasingly traded like risk assets—moving in tandem with equities and responding swiftly to major policy shocks.

Analysts said the sell-off demonstrated how leveraged speculation has amplified short-term swings in crypto, with traders quickly forced to unwind positions amid sudden shifts in global sentiment.

Altcoins Stage Broad Rebound

Following the weekend bloodbath, major altcoins bounced back strongly on Monday.

• Ethereum (ETH) surged 9% to $4,167.36, recovering from below $4,000.
• XRP gained 8.5% to $2.59.
• Solana rose 7.7%, Cardano added 9%, and Polygon advanced 5.7%.
• Among meme tokens, Dogecoin jumped 10%, while $TRUMP rebounded 5.2%.

Outlook

While the rebound has eased immediate panic, traders remain cautious as macro uncertainty persists. Analysts warned that further policy headlines or volatility in U.S.-China relations could trigger renewed swings in the coming days.

The episode reinforced a growing reality for digital assets: in an increasingly interconnected global market, crypto no longer moves in isolation—its fortunes now rise and fall alongside the broader risk environment.