According to CoinGecko statistics, the total market value of all cryptocurrencies increased by almost 6% on Monday, surpassing $4 trillion.
Although President Donald Trump attempted to allay worries about trade between the United States and China, the majority of major cryptocurrencies recovered from severe losses sustained during a savage weekend decline.
According to CoinGecko statistics, the total market value of all cryptocurrencies increased by almost 6% on Monday, surpassing $4 trillion. After falling below $105,000 on Friday in the US, Bitcoin was trading at over $115,000 in London on Monday morning. The value of smaller tokens also increased, with Ether returning to almost $4,100 after dropping to less than $3,500.
Trump and Vice President JD Vance’s remarks on Sunday indicating their willingness to a deal with China that reduced trade tensions aligned with the gains. Trump proposed harsh new tariffs on China on Friday, wiping out a record $19 billion in cryptocurrency bets and sending prices down. For international trading, leverage, automatically triggered sells, and insufficient liquidity at odd hours increased traders’ losses.
“A conciliatory message from Trump is driving the comeback,” said Richard Galvin, DACM’s co-founder. According to Galvin, the majority of so-called altcoins, which are abbreviations for smaller tokens, are still trading much lower than they were on October 9. “As for the future, headline risk is still strong, as it will be throughout 2025, and the market is vulnerable to any more trade escalation statements or other left-tail threats.”
The effects of the selloff were extensive. The third-largest stablecoin, Ethena USDe, momentarily lost its dollar peg. The largest exchange for digital assets, Binance, had technical issues. Coinglass, a data tracker, reports that over 1.6 million traders were liquidated.
As the week begins, executives wonder who was most affected by the losses. They have not yet found any proof of a blowup, which is a persistent concern in cryptocurrency markets after other collapses like Sam Bankman-Fried’s FTX, which set off a series of failures.
Coinglass said in a research note that funding rates, or the interest paid by optimistic traders to take on leverage for futures bets, had fallen to their lowest levels since about the time of FTX’s collapse in 2022, one of “the most severe leverage resets in crypto history.”
In a research statement, cryptocurrency market maker Caladan said that open interest in Bitcoin and Ether options had halved to $33 billion and $19 billion, respectively, as a result of the drop. According to Galvin, this reset will “put a surer foundation beneath pricing throughout the medium term.”
As recently as October 6, Bitcoin hit a record high of $126,251, and it is still up 23% so far this year, thanks in large part to Trump’s pro-crypto policies in the US.