The cryptocurrency market is experiencing a notable rebound following last week’s sell-off, sparked by former US President Donald Trump’s declaration of imposing 100 per cent tariffs on Chinese imports starting November 1. The action, which shook global risk assets, resulted in a significant decline across digital currencies. Bitcoin, the world’s largest cryptocurrency, reached an all-time high of $126,198 on October 7 but has since fallen below the $111,300 threshold as investor sentiment took a hit following the tariff news. Since then, however, the market has stabilised, with Bitcoin and other major tokens like Ethereum demonstrating robust signs of recovery. The downturn in the crypto markets, was primarily fueled by panic-induced profit booking and widespread liquidations. More than $19 billion in leveraged positions were liquidated, marking the largest deleveraging event in the history of the crypto market. In the face of significant volatility, market participants showed remarkable resilience, as total crypto market capitalisation surged back above $4 trillion.
At last check, Bitcoin was priced at $115,166, reflecting an increase of 3.01 percent over the past 24 hours, with a trading volume of ₹92.5 billion, according to data. The token fluctuated between $111,240 and $115,955 throughout the session. The market capitalization reached $2.29 trillion, solidifying its position as a leader in the digital asset arena. Despite this, the token remains approximately 8.7 percent below its recent peak of $126,198. The $20,000 swing in Bitcoin price underscores the resurgence of what markets are calling the ‘Trump trade,’ according to Riya Sehgal, as policy headlines and geopolitical developments increasingly steer market direction. She stated that last week’s correction was influenced more by sentiment than by fundamentals. “The rebound that followed Trump’s softened stance indicates that confidence in digital assets remains strong. “We expect continued volatility ahead of key macro events such as Fed Chair Jerome Powell’s upcoming speech and any fresh developments on the US–China trade front,” Sehgal added.
Ethereum, the second-largest cryptocurrency by market capitalization, has demonstrated a more robust recovery compared to Bitcoin. Following a dip to $3,798 last week, ETH experienced a significant rebound and is now trading steadily above the $4,100 threshold. As of the latest update, Ethereum is priced at $4,186, reflecting a 9 percent increase over the last 24 hours, accompanied by a trading volume of $59.86 billion. The market capitalization was recorded at $505.48 billion. Even with the recent recovery, the token remains more than 15 percent beneath its all-time high of $4,953, reached on August 25 this year. Market analysts have pointed to the robust recovery in crypto markets as being influenced by potential de-escalation discussions between the US and China, in addition to short liquidations. “Hopes of possible de-escalation talks between the US and China, along with $259 million in short liquidations, have eased selling pressure, fueling the rally,” stated Edul Patel. For a sustained uptrend, Patel asserts that Bitcoin must decisively breach the $120,000 resistance zone, with immediate support identified at $113,500. “Any dovish signal from Jerome Powell regarding rate cuts in his speech this week could further strengthen Bitcoin’s upward trajectory,” Patel stated.
Alongside Bitcoin and Ethereum, several altcoins saw notable increases, suggesting a broad recovery in the digital asset market. Synthetix emerged as the standout performer, surging almost 90 percent to reach $1.87 in the session, according to reports. Other tokens that experienced significant gains in the 10–35 percent range included Bittensor, Mantle, World Liberty Financial, PancakeSwap, Render, SPX6900, Morpho, Astar, Immutable, BNB, Curve DAO Token, Pudgy Penguins, Ethena, Aerodrome Finance, Pump.fun, Bonk, Pendle, Pepe, Ethereum Name Service, Celestia, Chainlink, Sui, Lido DAO, Injective, ether.fi, Dogecoin, Sei, Jupiter, and Ethereum Classic.