Cryptocurrency markets are showing signs of recovery after one of the most turbulent weekends in recent memory.
A flash crash late Friday, triggered by former President Trump’s announcement of a 100% tariff on Chinese imports, wiped nearly $19 billion from crypto positions, the largest single-day liquidation on record.
Yet just 48 hours later, the market has steadied. Bitcoin and alternative cryptocurrencies are bouncing back as diplomatic signals from both Washington and Beijing ease trade tensions.
Bitcoin and Altcoins Rally
Bitcoin (BTC) rose 2.7% over the past 24 hours to around $114,665, while Ether (ETH) surged 8.3% to $4,135. Binance Coin (BNB) led gains among ecosystem tokens with a 13.9% jump, and XRP rose 7.4%, followed closely by Solana (SOL) at 7.2%.
Among alternative cryptocurrencies, Cardano (ADA) and Dogecoin (DOGE) stood out. Both rallied nearly 10% in 24 hours, drawing attention from bargain hunters seeking discounted valuations.
Market observers suggest the rebound signals that the broader bullish trend remains intact despite the volatility reset.
“What we just saw was a massive emotional reset,” said Justin d’Anethan, head of partnerships at Arctic Digital. “Volatility cuts both ways, traders were punished on the way down and on the snap back. But the longer-term structure is intact. ETF inflows remain strong, exchange balances near cycle lows, and the broader narrative is arguably stronger after the washout.”
The recovery in Dogecoin is being driven not just by retail traders but by institutional activity as well.
CleanCore Solutions has grown its Dogecoin treasury to more than 710 million tokens, valued at around $188 million, as part of a plan to eventually hold 1 billion DOGE. The company built its position through a $175 million private placement earlier this year, reflecting a deliberate, long-term approach rather than a short-term speculative play.
This effort is backed by the Dogecoin Foundation and its corporate arm, House of Doge, and CEO Clayton Adams said the goal is to expand Dogecoin’s use in practical applications while creating sustainable value.
The mechanics of the washout
On the decentralized exchange Hyperliquid alone, more than 6,300 wallets were liquidated. Some traders lost millions in a cascade triggered by Auto-Deleveraging, a mechanism that closes winning positions to cover systemic losses when insurance funds run dry.
While this process prevented bad debt from spreading further, it magnified the sell-off, turning the correction into a structural market event.
The market’s rebound coincided with clarifications from China’s Ministry of Commerce that rare-earth export controls would not constitute a blanket ban, alongside Trump’s statement that “the U.S.A wants to help China, not hurt it.”
“If the U.S. and China spat doesn’t escalate into a full-on trade war, the market is likely to recover and push back toward all-time highs,” said Jeff Mei, COO at BTSE, in a note to CoinDesk.
What comes next
The trajectory of crypto will continue to be influenced by macroeconomic conditions, particularly interest rates and investor risk appetite. Traders anticipate that if central banks pivot toward easing, ETH and yield-generating tokens could outperform. Indicators like funding rates, options skew, and whale flows will reveal where fresh capital rotates next.
Despite the shakeout, confidence remains. The weekend’s turbulence appears to have burned leverage rather than belief.
Oleksii Shumak
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