Bitcoin News Today: Bitcoin's Macro Hedge Moment: 46% Recovery as Trump Eases Trade War Fears

Bitcoin clawed back 46% of its losses following a dramatic market rebound after U.S. President Donald Trump softened his stance on trade tensions with China. The cryptocurrency surged 3% to near $115,000 in 24 hours, while Ethereum gained nearly 9% to $4,130, according to Binance data Crypto markets rebound after $19 billion wipeout leaves ... - Fortune^[1]. The recovery came after a record $19 billion in leveraged positions were liquidated in a single day-a historic event surpassing previous crises like the FTX collapse and the 2020 COVID-19 crash .

The initial sell-off was triggered by Trump's Friday announcement of a 100% tariff on Chinese imports, which reignited fears of a trade war. The president cited new Chinese export restrictions on rare earth minerals as justification, but later clarified that the tariffs "don't have to happen" Stocks surge after Trump softens trade tone on China - Quartz^[6]. Over the weekend, Trump posted on Truth Social: "Don't worry about China, it will all be fine!" while U.S. Treasury Secretary Scott Bessent emphasized "substantial communication" with China to de-escalate tensions Crypto markets rebound after $19 billion wipeout leaves ... - Fortune^[1].

The market turmoil extended beyond crypto. The S&P 500 rebounded 1% after a 3% drop on Friday, while stablecoin USDe briefly depegged to 65 cents on Binance before recovering Crypto markets rebound after $19 billion wipeout leaves ... - Fortune^[1]. Bitcoin's market capitalization fell nearly $200 billion in 24 hours, but by Monday, the total crypto market cap had rebounded to $4.01 trillion, erasing half of Friday's losses Crypto markets rebound after $19 billion wipeout leaves ... - Fortune^[1].

Institutional confidence remained evident despite the volatility. Spot Bitcoin ETFs recorded $2.71 billion in weekly inflows, with Marathon Digital Holdings purchasing an additional 400 BTC worth $45.9 million Bitcoin Mining Stocks Surge After Trump’s Tariff Comments Sparked Panic^[5]. Meanwhile, MicroStrategy added 220 BTC at an average price of $123,561, pushing its total holdings to 640,250 BTC valued at $73 billion Bitcoin Mining Stocks Surge After Trump’s Tariff Comments Sparked Panic^[5].

The liquidation event highlighted systemic fragility. Open interest in Bitcoin and Ether options halved, while leverage ratios dropped to their lowest since August Bitcoin Mining Stocks Surge After Trump’s Tariff Comments Sparked Panic^[5]. Analysts described the crash as a "healthy flush-out" of speculative exposure, with Bitcoin's hash rate rising 21.7% quarter-on-quarter to 611 EH/s, underscoring miner resilience Bitcoin Mining Stocks Surge After Trump’s Tariff Comments Sparked Panic^[5].

Geopolitical uncertainty persists, however. China's Ministry of Commerce signaled openness to dialogue, while U.S. government shutdowns delayed key economic data releases. Bitcoin's correlation with gold spiked as the yellow metal surged to $4,119/oz, reinforcing its role as a macro hedge Bitcoin Mining Stocks Surge After Trump’s Tariff Comments Sparked Panic^[5].

The rebound also lifted crypto mining stocks, with Bitfarms and Cipher Mining surging over 20% after Friday's losses Crypto’s $19 Billion Liquidation Explained: Here’s What^[7]. U.S. Treasury Secretary Bessent's remarks and Trump's reversal eased fears of a prolonged trade war, though analysts warned that the "TACO trade" (Trump Always Chickens Out) remains a betting theme Why Did The Crypto Market Crash Today? - CoinCentral^[8].

Despite the recovery, challenges linger. Over 1.6 million traders were liquidated, and some altcoins like Solana and XRP faced double-digit declines . The incident underscores crypto's sensitivity to macro shocks and leverage, with experts cautioning that stability will depend on U.S.-China negotiations and Federal Reserve policy shifts.