The crypto market rebound accelerated over the weekend as roughly $180 billion flooded back into digital assets, and this surge came right after tensions between the United States and China showed signs of easing. The crypto market rebound was sparked by Beijing’s clarification that its rare earth export controls weren’t actually an outright ban, which reversed Friday’s historic collapse that had triggered the largest liquidation event ever recorded. At the time of writing, the total crypto market rebound has pushed capitalization to $3.87 trillion, up from $3.69 trillion just 24 hours earlier.
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Bitcoin Leads Recovery as Trade Tensions Ease
Markets Rally on Improved Outlook
The crypto market rebound was led by major tokens across the board, with Bitcoin posting a 2% gain to trade above $114,000. The Bitcoin price surge came alongside even stronger moves in alternative cryptocurrencies, as Ethereum jumped nearly 8% to reach $4,139. Binance Coin emerged as the strongest performer with a 12.34% surge to $1,297, while Solana climbed 6.19% to $195, and XRP also moved higher.
The altcoin recovery gained momentum after President Donald Trump signaled openness to striking a deal. Trump stated:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
Prospects for a US-China trade deal improved significantly as officials from both sides indicated willingness to negotiate, which helped restore investor confidence that had been shattered just days earlier.
Officials Signal Path Forward
Vice President JD Vance called for calm during an appearance on Fox News’s Sunday Morning Futures. Vance said:
“If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable, then the US would, too.”
US Trade Representative Jamieson Greer expressed optimism about markets settling down in the coming week. Greer stated:
“I think we’ll see the markets calm this coming week, as they see things settle out, hopefully.”
The Bitcoin price surge and broader crypto market rebound were viewed positively by Wall Street analysts as well. Goldman Sachs economists suggested in a note that “the most likely scenario seems to be that both sides pull back on the most aggressive policies and that talks lead to a further — and possibly indefinite — extension of the tariff escalation pause reached in May.”
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Swift Recovery Follows Historic Liquidations
The altcoin recovery came after Friday’s chaos had resulted in the largest crypto liquidation in history, and an estimated $2.5 trillion in S&P 500 market capitalization was wiped out during the sell-off. The panic was fueled by President Trump’s delayed response to China’s announcement, which came more than a day after the initial report.
Trump had threatened to impose 100% tariffs on Chinese goods starting November 1. Even more, he signaled potential restrictions on software exports. But when asked about the deadline, Trump told reporters:
“You know for me, you know what November 1 is? It’s an eternity. November 1 is an eternity for me.”
China’s Ministry of Commerce responded by calling for negotiations and urging the US to back off on threats. The ministry said:
“Threatening with high tariffs at every turn is not the right way to get along with China.”
Investor confidence has been restored as markets now view the tariff threats as negotiating tactics rather than firm policy. The swift crypto market rebound validates predictions from analysts who had maintained that the correction would be short-lived. Right now the altcoin recovery appears to be gaining strength as both nations work toward resolving their differences. The US-China trade deal remains uncertain, but the improved tone from officials on both sides has given markets reason for optimism about the path forward.