Crypto Markets Rebound as Cardano, Dogecoin Gain After $19B Liquidation

Bitcoin traders experienced a tumultuous weekend following a flash crash triggered by Trump's tariff announcement on Chinese imports, resulting in a record $19 billion liquidation of crypto positions. However, the market has since stabilized as tensions between Washington and Beijing eased.

Alternative cryptocurrencies like Cardano (ADA) and Dogecoin (DOGE) led a bounce, each gaining nearly 10% in 24 hours.
Bitcoin (BTC) increased by 2.7% to approximately $114,665, and Ether (ETH) surged 8.3% to $4,135.
BNB rose 13.9%, while XRP and Solana (SOL) saw gains of 7.4% and 7.2%, respectively.

The recent market volatility indicates that while volatility affected sentiment, the overall bullish trend remains unbroken. A significant number of wallets were liquidated due to Auto-Deleveraging on Hyperliquid, exacerbating the decline but preventing bad debt.

U.S.-China Tensions Easing

The rebound began as China's Ministry of Commerce clarified its stance on rare-earth export controls, and Trump signaled a desire to aid China, suggesting a de-escalation in trade war rhetoric. This reassured markets, leading to a recovery in risk assets.

Future market movements will depend on rates and risk appetite, with potential outperformance expected from yield-generating tokens if central banks ease monetary policies. The recent shakeout reduced leverage but did not affect overall market belief.