Crypto had one of its absolute worst days ever on Friday and then bounced back hard on Monday. The total value of all cryptocurrencies jumped over 6% to break past $4 trillion after Trump and his VP started talking about making a deal with China instead of escalating the trade war.
Bitcoin climbed back to $114,500 Monday morning after getting crushed down below $105,000 on Friday. Ethereum recovered to around $4,100 after tanking to $3,500. Even the smaller tokens started clawing back ground, though most were still way down from where they’d been just a few days before.
The damage from Friday was honestly brutal and one of the worst things crypto’s ever experienced. Close to $20 billion in leveraged bets disappeared as prices fell hard. Over 1.6 million traders got their positions automatically closed out when things moved against them. Ethena’s stablecoin lost its peg while Binance had technical problems from all the chaos.
What’s worth noting is that so far nobody has found evidence of some major exchange or trading firm blowing up from this. That was the scary possibility everyone kept talking about: that all these liquidations would trigger a chain reaction like FTX. Doesn’t look like that’s happening this time around.
The interest rates for leveraged bets hit their lowest point since FTX fell apart in 2022. That means the overleveraged traders got wiped out, and the market basically got reset. Bitcoin was up 23% for the year before Friday, mostly because Trump promised pro-crypto policies.
Conclusion
Crypto recovered 6% to $4 trillion Monday as Trump eased China tensions, bouncing back from Friday’s $20 billion liquidation that destroyed 1.6 million traders.
Also Read: Ethereum Recovers
