Prices of major digital currencies recovered on Monday after a sharp decline over the weekend that wiped out billions of dollars in leveraged trades, following US President Donald Trump’s efforts to allay market fears of escalating trade tensions with China, with the price of Bitcoin (BTC) rising 4.5% to 115,459 dollars, and the price of the Ethereum currency jumped. (Ethereum-ETH) rose 11.3% to $4,161, while the price of Binance coin (Binance-BNB) rose almost 1% to $1,304, and Ripple (Ripple-XRP) made gains of 10% to $2.56.
The resumption follows conciliatory statements made Sunday by Trump and Vice President JD Vance, in which they expressed openness to reaching a trade deal with Beijing. Trump’s speech was characterized by a softer tone, as he called Chinese President Xi Jinping “highly respected,” emphasizing that the United States sought to “help” and not “harm” China, despite existing disputes over rare earth exports and expected tariff increases.
Liquidation of leveraged trades wipes out around $20 billion in crypto bets
Markets have suffered since Friday, when Trump announced additional 100% tariffs on Chinese imports, triggering a global sell-off. The sharp drop occurred on Saturday evening as the price of Bitcoin fell below $110,000 and the price of Ethereum fell more than 20% in a matter of hours. As prices of high-risk assets fell, crypto traders faced massive liquidations exacerbated by low liquidity and automated sell orders on platforms like Binance, OKX and Bybit.
The Fear and Greed Index in the digital currency market fell from 64, which indicates “greed,” to 27, which reflects “fear,” in less than a day. More than 1.6 million traders were liquidated and total losses exceeded $19.3 billion, while some sources estimate that the real value could be around $30 billion, given that some platforms only record one liquidation order per second.
The Crypto Fear and Greed Index crashed 64 to 27 after Trump’s 100% tariff shock – over $19.33 billion liquidated and $1 billion wiped from the market in three hours.
Another crash to come?#Bitcoin #Ethereumhttps://t.co/ZPzP74ngrh– Cryptonews.com (@cryptonews) October 11, 2025
Fears of an escalating trade war are clouding the outlook for global growth and risk assets, including cryptocurrencies.
Market losses reached a level close to that which occurred during the May 2021 collapse, when excessive use of financial leverage led to an accelerated series of forced sales, and analysts said this latest event reflects the same structural flaws of digital currency markets, represented by high leverage, low liquidity during periods of slow activity, and resulting automated sales trading algorithms.
Greg Magadini, director of derivatives at Amberdata, noted that the real concern now is the possibility of retaliation from China. “The risk lies not in the tariffs themselves, but in China’s response with harsh countermeasures,” he said. “An all-out trade war between the world’s two largest economies would pose a major challenge to global growth. »
Magadini added that current trading trends indicate that investors are moving towards safe assets, with pressure indicators emerging across various asset classes, explaining: “Cryptocurrencies are under pressure, while growing demand for US Treasuries reflects real concerns about economic dynamics. At present, it appears that Trump’s statements have managed to calm the overall market mood, with crypto market traders welcoming signs of diplomatic opening, despite a high level of volatility continuing.
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