Bitcoin is back above $114,000 after the biggest crypto liquidation in history. But a choppy road lies ahead for investors.

Group 1 - Major cryptocurrencies experienced a rebound on Monday after a significant selloff that resulted in a $19 billion loss, marking the largest liquidation in crypto history [1][4] - Bitcoin rose 0.5% to approximately $114,683, recovering 6.9% from a low of $106,770, but remains 9.2% below its record high of $126,272 reached on October 6, while showing a year-to-date increase of 22.6% [2] - Elevated volatility in the cryptocurrency market suggests a challenging outlook ahead, with potential external shocks posing risks to investor confidence [3] Group 2 - The selloff was triggered by President Trump's announcement of a 100% tariff on imports from China and export controls on critical software, effective November 1 [4] - Liquidity in crypto futures diminished as market makers withdrew quotes to manage risk, leading to forced liquidations and panic selling that exacerbated the price decline [5][6] - The thinning of order books resulted in a self-reinforcing cycle of liquidations, particularly affecting traders with large leveraged positions in crypto derivatives like perpetual futures [6]