Crypto Market Rebounds as Bitcoin Rises After $20B Liquidations

Bitcoin and ether traders are cautiously optimistic after last week's tariff shock, which wiped out nearly $20 billion in leveraged positions.
Bitcoin (BTC) increased by 1.3% to approximately $113,000, while ether (ETH) traded near $4,100. Solana (SOL), XRP, and Dogecoin (DOGE) also saw gains.
The crypto market capitalization stands at $3.9 trillion, 6% below pre-crash levels but up 4.4% from Sunday's lows.
The crypto fear and greed index rose to 38 from 24, indicating a cautious return of traders.
Friday's sell-off was triggered by tariff headlines, leading to forced liquidations and marking a potential short-term market bottom.
Historical patterns suggest potential for recovery, though the timeline remains uncertain.
China clarified its rare-earth export curbs were not absolute bans, easing trade tensions with the U.S.
Polymarket shows a reduced probability of 100% tariffs on China by November 1.
The crash is viewed as a technical event driven by margin calls, not a fundamental market shift.
Analysts believe crypto markets have room for a relief rally if volatility remains low.