TLDR
- Bitcoin and crypto markets recovered after Trump softened his aggressive China tariff position, posting that US-China relations “will all be fine”
- The crypto market suffered a record $19 billion liquidation event following Trump’s Friday announcement of potential 100% tariffs on Chinese goods
- Cardano gained 10% and Dogecoin rose 10% leading the crypto recovery as bargain hunters entered the market
- Stock futures jumped over 1% with Dow futures up 1% and Nasdaq futures up 2% on Monday morning
- Trump indicated negotiations could happen before the November 1 tariff deadline, calming market fears about an extended trade war
Cryptocurrency markets staged a strong comeback on Monday after President Trump posted reassuring comments about US-China relations. His Truth Social message suggested a softer stance on trade tensions, helping markets recover from Friday’s historic crash.
Trump wrote that China relations “will all be fine” and stated “The U.S.A. wants to help China, not hurt it.” These comments marked a shift from his Friday announcement threatening 100% tariffs on Chinese goods. That initial announcement had triggered the largest single-day liquidation event in crypto history.
The Friday flash crash eliminated $19 billion in crypto positions. Bitcoin fell sharply before recovering to trade around $114,665, showing a 2.7% gain over 24 hours. Ethereum performed even better, surging 8.3% to reach $4,135.
Alternative Cryptocurrencies Lead Market Recovery
Cardano and Dogecoin led the rebound with both tokens gaining approximately 10% in 24 hours. Traders took advantage of discounted prices following the crash. BNB posted the strongest performance with a 13.9% gain, while Solana added 7.2% and XRP climbed 7.4%.
The recovery showed that liquidity was flowing back into cryptocurrency markets. Justin d’Anethan from Arctic Digital called the event “a massive emotional reset” but noted the longer-term market structure remained solid. ETF inflows continue showing strength and exchange balances sit near cycle lows.
Over 6,300 wallets were liquidated on Hyperliquid exchange alone during Friday’s crash. Some traders lost millions when Auto-Deleveraging mechanisms activated. These circuit-breakers close winning positions to cover systemic losses when insurance funds run out.
Stock Markets Rally on Trade War Relief
US stock futures showed strong gains before Monday’s opening. Dow Jones futures rose 1% while S&P 500 contracts gained 1.5%. Nasdaq 100 futures jumped 2%, reflecting renewed investor confidence.
Friday’s market selloff had erased approximately $2 trillion from US equity values. The recovery began over the weekend when China’s Ministry of Commerce clarified that rare-earth export controls wouldn’t be a blanket ban. This announcement, combined with Trump’s conciliatory message, signaled cooling trade tensions.
Trump told reporters that imposing tariffs on November 1 remained his plan. However, he suggested the US and China would reach an agreement in the time remaining before that deadline. Markets interpreted this as a positive signal for potential negotiations.
Jeff Mei from BTSE stated that if US-China tensions don’t escalate into a full trade war, the market should recover and push toward all-time highs. The next phase depends on interest rates and overall risk appetite among investors.
China’s response included Trump’s statement that “Highly respected President Xi just had a bad moment.” The message emphasized that neither country wants an economic depression. Markets took these comments as evidence that both sides remain open to dialogue.
The crypto market’s recovery demonstrated that the broader bullish trend hasn’t broken despite recent volatility.
