Cryptocurrency prices were back on the rise on Monday, as a diplomatic lull between Washington and Beijing helped erase part of Friday’s historic loss. The total market value of cryptocurrencies jumped by approximately 5%, with more than $550 billion flowing into digital assets after the panic sparked by talk of 100% US tariffs on Chinese goods.
Bitcoin (BTC) regained $115,000 (+3%), Ethereum (ETH) rose to $4,142 (+8.2%), and XRP traded near $2.54. Major coins with high betas joined the recovery: BNB rose 14% and Solana (SOL) gained 7%.
BTC's price records massive drop on the daily chart. Source: BTCUSD on Tradingview
Trade war fears ease as China clarifies export rules and Trump softens his rhetoric
The offer returned as China’s Ministry of Commerce clarified that rare earth export controls are legal but not a ban, with corresponding civil applications approved. President Donald Trump also took a more conciliatory tone, declaring that the United States wants to “help China, not hurt it,” alleviating fears of an escalation in the trade war in the near term.
The transformation follows the greater Encryption filtering All in all, more than $19 to $20 billion in 24 hours, as excessive long positions were eliminated in a series on Friday. Prediction markets are now pricing in sharply lower odds of full tariffs being imposed by November 1, in line with the broad rebound in risk on Monday.
Institutions are buying the dip as ETF momentum stabilizes
From a deeper perspective, flows remained constructive. Bitcoin ETFs It saw only minor daily outflows ($4.5 million on Friday) and remained net positive at around $6 billion for October, indicating continued institutional demand across regulated instruments.
On-chain observers also noted that Marathon Digital added 400 BTC ($46 million) through FalconX in early trading on Monday, consistent with Treasuries opportunistically accumulating in weakness.
Sentiment gauges improved from ‘extreme fear’, while social data on Stocktwits turned bullish for BTC, with some traders eyeing a retest of $140K if macro tailwinds persist.
Levels to watch: support, resistance and triggers
Technically, BTC’s quick recovery places $114,000-$117,000 as near-term support, with resistance around $121,000-$126,000 (recent ATH zone). ETH is facing a bid near $4,200-$4,300, while XRP watchers highlight $2.60-$2.65 as an obstacle to launching momentum towards $3.00.
Macroeconomics remains the main swing factor, as any renewed tariff threats or US data surprises (particularly amid an incomplete government statistical calendar) could reignite volatility.
Conversely, continued ETF inflows, improving liquidity, and calm rhetoric between the US and China continue to support a base-building environment heading into the fourth quarter.
Cover image from ChatGPT and BTCUSD chart from Tradingview
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