Bitcoin News Today: From $19B Liquidations to $115K: Trade Truce Sparks Crypto Rally

Bitcoin rebounded to $115,000 as Ethereum (ETH), XRP, and Dogecoin (DOGE) surged following de-escalation in U.S.-China trade tensions, according to market data and analyst commentary. The recovery followed a sharp sell-off triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, which caused $19 billion in crypto liquidations-the largest in history-according to CoinGlass Coindesk^[1]. Bitcoin initially dropped to $103,000 amid the panic, but stabilized as Trump signaled a softer stance and China expressed openness to dialogue Invezz^[3].

The recovery was driven by reduced leverage in the market after the liquidation event. Short positions accounted for 66% of $626 million in derivatives liquidations over 24 hours, indicating a shift in sentiment Invezz^[3]. On-chain metrics showed Bitcoin's short-term holder (STH) cost basis was reclaimed at $114,000, a key support level during bull market pullbacks Invezz^[3]. Analysts noted that the removal of over $19 billion in leveraged positions reduced speculative pressure, creating a stable base for a rebound Invezz^[3].

Altcoins also experienced a rally. Ethereum surged from $3,800 to $4,200, while XRP, Solana (SOL), and DOGE gained 4–7% Invezz^[3]. Synthetix (SNX) led the recovery with a 130% gain, attributed to anticipation of its Ethereum-based perpetuals DEX launch and a $1 million trading competition Invezz^[3]. Bittensor (TAO) rose 26.7% following Grayscale's SEC filing for a Bittensor Trust, which could attract institutional capital Invezz^[3].

Market analysts highlighted positive indicators. CryptoQuant noted that Bitcoin's funding rates stabilized at modestly positive levels, suggesting normalization of bearish sentiment Invezz^[3]. The Stablecoin Supply Ratio (SSR) dropped to a four-month low, signaling potential re-entry of stablecoin capital into the market Invezz^[3]. Michael van de Poppe of MN Capital observed that Bitcoin's recovery above the 20-week moving average ($113,300) confirmed continuation of the uptrend Invezz^[3].

However, caution remained. Scott Melker, known as "The Wolf of All Streets," warned that flash crash recoveries often see 50% rebounds, which Bitcoin had yet to achieve Invezz^[3]. AlejandroBTC flagged a "triple bearish divergence" on the weekly RSI, suggesting potential exhaustion in the rally Invezz^[3]. Despite these concerns, the total crypto market cap climbed back above $4 trillion, reflecting improved risk appetite Invezz^[3].

The rebound came after a volatile weekend marked by $7 billion in liquidations and a broader market sell-off. Nasdaq and S&P 500 indices also saw their steepest declines in six months, per CNN CNN^[2]. The recovery underscores the interplay between geopolitical tensions and crypto markets, with traders positioning for renewed optimism as trade talks progress.