Bitcoin News Today: Relief Rally or False Dawn? Crypto Bounces as Trade Fears Ease

Bitcoin, Ethereum, XRP, and Dogecoin rebounded sharply on October 12, 2025, following U.S. President Donald Trump's remarks suggesting a de-escalation of trade tensions with China. The cryptocurrencies surged on optimism that geopolitical risks had eased, with Bitcoin reclaiming $115,716.67 (up 4.91%), Ethereum reaching $4,169.24 (11.68%), XRP hitting $2.53 (8.76%), and Dogecoin rising to $0.2080 (13.69%). The rally followed a record $19.1 billion in liquidations over 24 hours, the largest single-day wipeout in crypto history, triggered by Trump's earlier threat of 100% tariffs on Chinese imports Bitcoin, Ethereum, XRP, Dogecoin Rebound After Trump Says US^[1].

The rebound coincided with a broader market relief, as U.S. stock futures also surged. The Dow Jones Industrial Average Futures climbed 0.80%, while Nasdaq 100 Futures rose 1.72%, reflecting investor confidence in a potential trade war pause Trump Calms China Fears, Bitcoin and Ethereum Rebound^[2]. Trump's Truth Social post stating, "The U.S.A. wants to help China, not hurt it," was interpreted as a signal of reduced hostility, contrasting with his earlier aggressive rhetoric Crypto CARNAGE: $20B Vanishes as Bitcoin Plummets – Will It …^[3].

Market sentiment improved from "Extreme Fear" to "Fear" on the Crypto Fear & Greed Index, and open interest in Bitcoin and Ethereum derivatives increased by 8.12% and 13.1%, respectively, indicating renewed speculative activity Bitcoin, Ethereum, XRP, Dogecoin Rebound After Trump Says US^[4]. Analysts, including Michaël van de Poppe, noted that the recent crash was a "massive outlier" and not the start of a bear market, emphasizing Bitcoin's need to hold above $110,177 to maintain bullish momentum Crypto CARNAGE: $20B Vanishes as Bitcoin Plummets – Will It …^[5].

The global crypto market capitalization rose to $3.90 trillion, up 6.3% in 24 hours, despite earlier losses from the October 10–11 crash Bitcoin, Ethereum, XRP, Dogecoin Rebound After Trump Says US^[6]. While some traders viewed the rebound as a "relief bounce," others warned of volatility, with Ted Pillows cautioning that the market's tone would depend on Monday's stock market open Trump Calms China Fears, Bitcoin and Ethereum Rebound^[7].

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