The crypto market is rebounding after a steep weekend drop. Bitcoin, Ethereum, and several altcoins began Monday in recovery, bouncing off deep losses caused by record liquidations. A blend of global news and market events that might determine the next step is what traders are looking at now.
The present situation incorporates a new trade policy announcement, a possible U.S. government shutdown, and the beginning of the earnings season for companies. These elements, in unison, are creating a volatile week.
Markets Rebound After Record Liquidations
The total crypto market cap dropped to $3.3 trillion on Saturday, its lowest point since early July. It recovered to over $4 trillion by early Monday. This move came after large-scale liquidations hit leveraged positions across major exchanges.
Bitcoin briefly dipped below $110,000 but climbed back to $115,300. Ethereum returned above $4,200, gaining over 8% in 24 hours. XRP rose to $2.57, and Solana traded at $195. Other altcoins, including Dogecoin, Chainlink, and Sui, posted double-digit percentage gains.
Trump’s Tariff Move Triggers Market Reaction
The sharp drop began after President Donald Trump announced a new 100% tariff on Chinese imports, in addition to the 30% already in effect. The policy is expected to start by November. The announcement triggered a selloff in risk assets late Friday, which extended into the weekend.
Crypto markets were hit harder due to the amount of open leverage in perpetual swaps. These liquidations created fast and deep price drops. Over $19 billion in positions were liquidated, according to market data.
US stock futures opened higher on Monday following signs of easing trade tensions. Market watchers are cautious but looking for signs of stability in the days ahead.
US Data Delays Leave Policy Signals Unclear
The current U.S. government shutdown has postponed important economic reports. Consequently, the Federal Reserve is deprived of its usual data set, which might influence short-term policy choices.
Fed Chairman Jerome Powell’s talk is planned for Tuesday. Due to the scarcity of new information, analysts do not anticipate big signals. In the middle of the week, regional manufacturing surveys from New York and Philadelphia are going to be released. These reports monitor business activity but may not be able to have a substantial impact without the larger context.
A recent MarketWatch report noted stress in large states like New York and California. The article stated that if conditions worsen there, “they could take the whole US economy down with them.”
AI and DeFi Tokens Lead the Comeback
While top assets recovered, smaller altcoins tied to artificial intelligence and decentralized finance outperformed. Bittensor (TAO) jumped 35% to $410, reaching its highest level in eleven weeks. ChainOpera AI (COAI) surged 70% to $43.80, setting a new all-time high.
Render (RNDR), a GPU compute platform, rose 17% to $2.80. DeFi project Mantle (MNT) moved up 27%, fully recovering weekend losses. WLFI, linked to the Trump family, climbed 18% to $14.30. Binance’s tokens BNB and ASTER each gained 14%.
Reports also mentioned Binance’s systems freezing briefly during the crash. Several tokens depegged, triggering liquidations. The company said this happened before the broader selloff and confirmed that affected users holding USDE, BNSOL, and WBETH will be compensated.
The coming week is expected to bring more market activity, with traders watching global policy moves, earnings reports, and institutional flows into crypto.
