Crypto Market Rebounds as Trump Calms China Nerves

Key Insights:

• The crypto market has rebounded after Trump said, “Don’t worry about China.”
• The Kobeissi Letter lays out the tariff playbook and shows how Trump’s tactics affect the markets.
• The winners are those who maintain their calm, manage risk, and wait for the narrative to turn, experts said.

If the first lesson of crypto market trading is to expect volatility, the past 72 hours have delivered a masterclass. After Friday’s carnage, triggered by President Trump’s surprise declaration of 100% tariffs on Chinese imports, Monday morning’s crypto prices have opened with a very different story.

The crypto market has bounced, futures are green, and the mood, at least for now, is lighter.

It’s the kind of turnaround traders know all too well: no permanent scars, just fresh chart patterns on the terminal.

The Weekend Carnage: Panic in the Crypto Market

It didn’t take much for the wheels to come off last week. Trump’s announcement sent waves of panic through both traditional and digital asset markets, tanking crypto prices.

Bitcoin price, which was testing new highs above $126,000 just days before, cratered by nearly 13% in a single session, scraping lows below $110,000.

Those watching altcoins, especially XRP, saw even worse, with losses cresting 50% in just 30 minutes after the news dropped.

Over $19 billion in leveraged crypto bets were liquidated in less than 24 hours, forcing even seasoned pros to walk away licking their wounds.

Forced selling and auto-liquidations filled the crypto news, a result of thin weekend liquidity, and traders caught “over their skis” on leverage.

Traditional equities were spared the full blast simply because the news landed late Friday, after market close, leaving crypto’s 24/7 ecosystem to shoulder the entire move on its own.

Trump’s Tariff Playbook: Market Moves by Fiat

The Kobeissi Letter tracked tariff developments over the last 10 months and found the playbook to be familiar.

President Trump has a habit of igniting headline storms with tariff threats, sending uncertainty rippling out into the stock market and crypto prices.

The 11-step cycle includes cryptic social media hints, abrupt tariff pronouncements, panic-and-plunge, followed by conciliatory signals.

And it has played out many times before in both equities and the crypto market.

This time around, Friday’s crash set the stage for a weekend of risk. As China responded with hints of retaliation, investors bunkered down for further losses.

But by Sunday evening, Trump switched tack, posting on Truth Social:

For traders, it’s textbook volatility management. As Kobeissi points out, sudden reversals are common once policymakers send signals that threaten to roll back the worst-case scenario.

Crypto Prices Rebound: From Fear to Relief

By the time global markets began to stir on Monday, the mood had shifted dramatically. Crypto prices rebounded across the board.

Bitcoin reclaimed $115,000, up almost 12% from its Friday low. Ethereum jumped by more than 11%, crossing $4,100, with altcoins like BNB, Solana, and XRP sprinting higher.

TradingView heatmaps across crypto and equity index futures glowed green as traders embraced risk again. Capital rotated out of stablecoins like USDT and USDC (safe havens in crisis), back into more speculative assets.

Liquidation pressure eased, with total forced selling dropping below $800 million for the first time this weekend. A sign that most short-term pain had already been felt.

Meanwhile, S&P 500 futures and global equity benchmarks began the week with strong gains, buoyed by hopes that the worst of the tariff drama was behind us.

Polymarket odds for a 100% tariff by November 1 fell sharply as the weekend headlines softened. Traders are now betting there’s only a 10% chance of escalation.

Crypto Market: Lessons from the Whipsaw

The crypto market operates in perpetual motion, absorbing shocks and recalibrating faster than any other asset class.

This weekend proved once again how sensitive digital assets and crypto prices are to geopolitical noise and the whims of those in power.

For crypto prices, the lesson is plain: headline risk is real, leverage is hazardous, and weekend liquidity remains a wild card.

But also, patience pays. For those who refused to panic-sell, Monday brought not just relief but opportunity.

The market’s resilience is a reminder that sometimes, the best moves are made in the eye of the storm. Just ask Bitmine, which scooped up another $480 million of ETH after the crash.

For now, the rebound belongs to those who managed their risk, stayed nimble, and waited for the narrative to turn. But in the crypto market, every rally carries an edge of caution.

There are fresh highs, sure, but also fresh reasons to keep one finger on the sell button. If one thing’s certain, it’s that the next crypto news headline is never far behind.