Cryptocurrency markets rebounded after a $19 billion loss left traders reeling
The cryptocurrency market rebounded on Monday, just days after traders were hit by the worst cryptocurrency liquidation event in history. Bitcoin has risen 3% in the past 24 hours and is now close to $11,500, according to data from Binance. Ethereumthe world’s second-largest cryptocurrency by market cap, rose even further, gaining nearly 9% to hover near $4,130. After falling below the $4 trillion mark on Friday, the total market capitalization of all cryptocurrencies fell by approximately 5% over the past day to $4.01 trillion.
The rebound in cryptocurrency prices comes on the heels of a disastrous Friday that saw more than $19 billion of traders’ positions evaporate. It was greater A one-day liquidation event tracked by cryptocurrency analytics firm CoinGlass. In less than 24 hours, Bitcoin lost more than $200 billion in market value and its price fell by almost 10%. Ethereum was hit even harder, falling by nearly 14%.
The market chaos has even affected stablecoins, or cryptocurrencies pegged to the US dollar. USDe, one of the largest stablecoins by market cap, depegged to 65 cents on cryptocurrency exchange Binance before quickly rebounding to $1. The delinking event was only related to Binance, not other exchanges, with Jae Young, founder of Ethena Labs, the developer behind USDe, saying. He said Sunday.
Friday’s market turmoil follows social media mail From President Donald Trump threatening the People’s Republic of China with 100% tariffs “on top of” the existing tariffs imposed on the country. “We just learned that China has taken a very aggressive stance on trade by sending a very hostile message to the world,” Trump said on Truth Social, the social media site his family owns.
Trump’s participation came in response to what happened recently Trade restrictions imposed by the People’s Republic on rare earth minerals and related technologies. The country is the world’s largest producer of rare earth elements, which include minerals needed to produce everyday technologies such as batteries, flat-screen televisions and even… Fighter planes.
But shortly after Trump issued his trade threats against China on Friday, he and his administration backed away from some of his more aggressive rhetoric. “Don’t worry about China, everything will be fine.” He posted Sunday on Truth Social. “The United States wants to help China, not hurt it!!!”
US Treasury Secretary Scott Besent echoed Trump’s words in an interview Monday morning with Fox Business Network. While Besant criticized China’s restrictions on rare earths, he said the administration had “significantly eased” trade tensions with China since Trump’s threats, and that there had been “significant communication” over the weekend.
“I think China is open to discussing this matter,” Besant added.
The stock market has responded positively. After falling 3% on Friday, the S&P 500 opened Monday up 1%.
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