Crypto markets rebound after $19 billion wipeout leaves traders reeling

Crypto Market Recovery - The crypto market experienced a significant rebound on Monday, with Bitcoin rising 3% to approximately $115,000 and Ethereum increasing nearly 9% to around $4,130, following a historic liquidation event [1][2] - The total market capitalization of all cryptocurrencies recovered nearly 5% to reach $4.01 trillion after dipping below the $4 trillion mark [1] Liquidation Event - A disastrous Friday saw over $19 billion in traders' positions liquidated, marking the largest one-day liquidation event recorded by CoinGlass [2] - Bitcoin's market capitalization dropped by more than $200 billion, with a price decline of nearly 10%, while Ethereum experienced a more severe drop of almost 14% [2] Impact on Stablecoins - The market turbulence also affected stablecoins, with USDe, a major stablecoin, temporarily depegging to 65 cents on Binance before rebounding to $1 [3] - The depegging incident was isolated to Binance and not observed on other exchanges, as clarified by the founder of Ethena Labs [3] Trade Tensions with China - The market chaos coincided with President Trump's social media post threatening China with a 100% tariff on top of existing tariffs, following China's recent trade restrictions on rare earth metals [4][5] - Trump's aggressive rhetoric was later softened, with a follow-up post stating that the U.S. aims to help China, not harm it, and U.S. Treasury Secretary Scott Bessent confirmed a de-escalation of trade tensions [6]