Bitcoin Bounces Back After Record Crypto Liquidations During the Weekend
A broad-based selloff led to over $19 billion in liquidations within 24 hours, the largest single-day liquidation event in crypto history.
Quick overview
- The crypto market is recovering after a chaotic weekend that saw over $19 billion in liquidations, the largest in history.
- Bitcoin has rebounded above $114,000 after a significant drop, while Ethereum has also recovered to around $4,100.
- Tensions between the U.S. and China escalated due to trade threats, but both sides have shown signs of de-escalation.
- Despite the volatility, market sentiment remains optimistic as major cryptocurrencies post significant gains.
The crypto market is finding its footing after a chaotic weekend triggered by renewed trade tensions between the United States and China. More than $19 billion in positions were liquidated in just 24 hours, marking the largest liquidation event in crypto history.
Cryptocurrencies are posting a strong rebound on Monday after one of the most violent bouts of volatility in their history late last week. Bitcoin (BTC) is back above $114,000 after briefly breaking below the $110,000 floor on Friday, when it plunged more than 12% in a single day.
Ethereum (ETH) also saw steep declines, falling 16% and losing the $3,700 support level over the same period. Now, the leading altcoin is trading near $4,100, recovering more than 7% in the past 24 hours. Other major cryptocurrencies such as Binance Coin (BNB), XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) are also posting significant gains—some even in double digits.
Trump Escalates Tensions with China
As is often the case during extreme market volatility, all eyes turned to the White House. On Friday, U.S. President Donald Trump rattled global markets by threatening to impose 100% tariffs on Chinese goods and rejecting a planned meeting with Chinese President Xi Jinping that was on the bilateral agenda.
Trump’s comments came just one day after China tightened export controls on rare earth minerals, a critical resource for the U.S. tech industry.
Beijing responded swiftly. China announced new port fees for U.S.-owned, operated, or flagged vessels, set to take effect on October 14. These measures mirror the port fees the U.S. introduced earlier this year on China-linked ships.
In addition, China’s antitrust regulator opened an investigation into Qualcomm, signaling that Beijing is prepared to expand retaliation beyond trade and logistics.
Signs of De-escalation
Trump struck a more conciliatory tone on Sunday. On social media, he wrote: “Don’t worry about China, everything will be fine!” and added that the U.S. “wants to help China, not hurt it.”
Beijing also moderated its language. The Chinese Ministry of Commerce described the new rare earth controls as a response to recent U.S. actions and stated: “We don’t want a tariff war, but we’re not afraid of one.”
Record Liquidations, But Optimism Remains
The impact on the crypto market was immediate and severe. The violent price declines prompted some analysts to compare the episode to March 2020, when COVID-19 lockdowns triggered panic across global markets.
A broad-based selloff led to over $19 billion in liquidations within 24 hours, the largest single-day liquidation event in crypto history in dollar terms. According to CoinGlass, the “true total” is likely much higher, as Binance—the world’s largest exchange—reports liquidation data more slowly than other platforms. Still, sentiment within the industry remains upbeat.
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