Crypto Market Rebounds 5% as U.S.–China Trade Tensions Ease and $550B Flows Back In

Crypto snapped back on Monday as a diplomatic cool-down between Washington and Beijing helped erase part of Friday’s historic ￰0￱ crypto market cap jumped roughly 5%, with over $550 billion flowing back into digital assets after a panic sparked by talk of 100% ￰1￱ on Chinese ￰2￱ (BTC) reclaimed $115,000 (+3%), Ethereum (ETH) climbed to $4,142 (+8.2%), and XRP traded near $2.54. High-beta majors joined the rebound: BNB surged 14% and Solana (SOL) gained 7%. Trade War Fears Ease as China Clarifies Export Rules and Trump Softens Tone The bid returned as China’s Ministry of Commerce clarified its rare-earth export controls are legal but not a ban, with compliant civilian applications to be ￰3￱ Donald Trump also struck a more conciliatory tone, posting that the ￰4￱ to “help China, not hurt it,” easing fears of a near-term trade war ￰5￱ shift follows the largest crypto liquidation on record, over $19–$20 billion in 24 hours, as over-levered longs were flushed in Friday’s ￰6￱ markets now price sharply lower odds of full tariffs by Nov. 1, aligning with Monday’s broad risk-on ￰7￱ Buy The Dip As ETF Momentum Steadies From a deeper perspective, the flows stayed ￰8￱ Bitcoin ETFs saw only minor daily outflows ($4.5M on Friday) and remain net positive by nearly $6B for October, signaling continuing institutional demand via regulated vehicles.

On-chain watchers also flagged Marathon Digital adding 400 BTC ($46M) through FalconX in early Monday trade, consistent with treasuries opportunistically accumulating into ￰9￱ gauges improved from “extreme fear,” while social data on Stocktwits flipped bullish for BTC, with some traders eyeing a retest of $140K if macro tailwinds ￰10￱ To Watch: Support, Resistance, And Catalysts Technically, BTC’s swift recovery places $114,000–$117,000 as near-term support, with resistance layered around $121,000–$126,000 (the recent ATH zone). ETH faces supply near $4,200–$4,300, while XRP watchers highlight $2.60–$2.65 as a hurdle to unlock momentum toward $3.00.

Macro remains the key swing factor, as any renewed tariff saber-rattling or ￰11￱ surprises (especially amid a patchy government-statistics calendar) could reignite volatility. Conversely, sustained ETF inflows, improving liquidity, and calmer U. S.–China rhetoric continue to support a base-building environment heading into ￰12￱ image from ChatGPT, BTCUSD chart from Tradingview