Bitcoin (BTC), Ethereum (ETH), and other major cryptocurries have seen slight rebound after a major rout during the weekened after US President Donald Trump imposed 100% tariffs on China. Last week’s sell-off was triggered less by fundamentals and more by a massive liquidation cascade, as Trump’s surprise tariff remarks on China sparked panic across risk assets.

With over $19 billion in leveraged positions wiped out, it was the largest deleveraging event in crypto history. However, the quick rebound after Trump’s softer tone shows that underlying confidence in digital assets remains intact. After plummeting to nearly $100,000, the Bitcoin price is attempting to stabilise. BTC is currently trading at $1,14,668.09, down 7.15% in the past 7 days, with its m-cap down to $2.28 trillion.

Meanwhile, the altcoins are displaying strength, with Ethereum sustaining above $4,000 and BNB above $1200. Besides, Solana experienced a strong recovery and is pushing hard to regain $200.

"In times when memecoins continue to experience upward pressure, some of the altcoins are thriving. The top gainers include Dash with over a 51% jump, followed by Bittensor by 35.15% and Mantle by 26%. Memcore & Artificial SuperIntelligence Alliance plunged marginally and are expected to recover soon," a statement from CoinDCX Research Team stated.

Additionally, the total stablecoin supply has surged to an all-time high of $301.5 billion. "The US & China ease trade tensions with a willingness for negotiations, raising hope for a market rebound. In the meantime, the funding rate across crypto has hit its lowest point since the 2022 crash, marking one of the most severe leverage resets in history," the statement said.

Experts say Bitcoin’s breakout past $1,14,000 and Ethereum’s 6% surge suggest that crypto markets are rapidly pricing in a thaw in US-China tensions. "What appeared as a violent liquidation event is now being recalibrated as a strategic pause, a moment where miscommunications and headline risk had exaggerated downside. The rebound underscores an important lesson: fundamentals, sentiment, and macro risk remain deeply intertwined in this space," Avinash Shekhar, Co-Founder & CEO, Pi42.

"That said, volatility will persist, and investors must stay nimble and disciplined with clear exit triggers and risk controls. In this regime, conviction without overexposure is the path to building durable positioning.”

Bitcoin's drop was largely driven by mass liquidations and profit-booking as global risk sentiment weakened. "Despite the volatility, markets have shown resilience, total crypto market capitalisation has rebounded above $4 trillion, with BTC and ETH gaining 4.8% and 12.4% respectively in the past 24 hours. With early signs of easing trade tensions and potential U.S.–China dialogue, market sentiment has improved. Bitcoin now faces resistance around $118K–$120K," a statement by CoinSwitch market desk stated.

It added that investors are clearly buying the dip, viewing corrections as long-term opportunities rather than moments of panic.

Edul Patel, CEO of Mudrex, said the crypto market is seeing a strong rebound following the sell-off triggered by Trump’s tariff announcement on China. "Bitcoin has recovered over 12% from the weekend lows, while Ethereum has reclaimed the $4000 level. 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."

Patel says to confirm a sustained rally, BTC must move above the key resistance zone of $120,000, while support stands at $113,500. "Any dovish signal from Jerome Powell on rate cuts during his Wednesday speech could further strengthen Bitcoin’s upward trajectory."

Riya Sehgal, Research Analyst, Delta Exchange, says the recent $20,000 Bitcoin swing highlights the re-emergence of the ‘Trump trade,’ where policy headlines and political sentiment drive market direction. "Last week’s sell-off was triggered less by fundamentals and more by a massive liquidation cascade, as Trump’s surprise tariff remarks on China sparked panic across risk assets. With over $19 billion in leveraged positions wiped out, it was the largest deleveraging event in crypto history. However, the quick rebound after Trump’s softer tone shows that underlying confidence in digital assets remains intact."

Sehgal says it's likely to see continued volatility ahead of key macro events such as Fed Chair Powell’s speech and ongoing U.S.–China trade developments. "For traders, this environment calls for disciplined risk management and awareness that geopolitical shifts can now impact crypto as sharply as traditional markets.The recent $20,000 Bitcoin swing highlights the re-emergence of the ‘Trump trade’, where policy headlines and political sentiment drive market direction...We’re likely to see continued volatility ahead of key macro events such as Fed Chair Powell’s speech and ongoing U.S.–China trade developments. For traders, this environment calls for disciplined risk management and awareness that geopolitical shifts can now impact crypto as sharply as traditional markets."