Crypto Markets Stabilize as Trump Attempts to Ease U.S.–China Trade Tensions

Market Rebound Snapshot

• Bitcoin climbed roughly 4.5%, touching around $115,000
• Ethereum surged over 11%
• Altcoins saw sharp rebounds too: XRP jumped about 10%, while Solana and BNB also posted strong gains 

The trigger for the bounce came after Trump walked back earlier threats of 100% import tariffs on China and praised President Xi as “highly respected,” signaling a possible move toward diplomacy. 

Why the Crash Happened

Over the weekend, global markets sold off aggressively after Trump’s repeated tariff threats. Crypto markets were hit especially hard due to their sensitivity to macro risk and reliance on leverage. During the dip, more than $19 billion in leveraged crypto positions were liquidated, further accelerating the drop. The Fear & Greed Index plunged from 64 (greed) to 27 (fear) in a single session. 

What to Watch Next

• China’s Response: Whether Beijing retaliates will be critical. A trade war escalation could wipe out gains.
• Sustained Momentum: For gains to hold, volume and conviction need to return—weak rebounds may falter.
• Macro Signals: Inflation data, rate decisions, and global supply chain alignment will likely drive the next leg.