Bitcoin, Ethereum Rebound as Trump Contains China Chaos to the Weekend!

The crypto market experienced extreme volatility after President Trump announced a potential 100% tariff on China late on a Friday. However, a subsequent, softer post over the weekend sparked a swift rebound in Bitcoin and Ethereum, leading many to suspect that the weekend-only volatility was an intentional maneuver to "shake out" leveraged crypto traders before traditional markets reopened.

1. The Tariff Announcement and Liquidation Impact

The crash was triggered by a political shock that only 24/7 crypto markets were open to absorb: The Announcement: On Friday, after Wall Street closed, President Trump posted a social media update threatening to impose a 100% tariff on all Chinese goods and export controls.Liquidation Result: The immediate fallout caused massive liquidations in the crypto derivatives market.Bitcoin (BTC): Plunged toward the $102,000 level.Ethereum (ETH): Fell sharply to its low point.Observation: The timing of the plunge, late on Friday, left only the continuous crypto markets to process the shock, which is a pattern that has been noted before (the "Trump Trade" weekend volatility).

2. The Rebound and De-escalation

The recovery was as swift as the crash, fueled by a single presidential post: The De-escalation Post: On Sunday morning, President Trump posted a calming message on social media, stating, "Don't worry about China, it will all be fine!" and that the USA wanted to help China.The Recovery: This instantly eased China fears, leading to a strong rebound:Bitcoin (BTC): Quickly approached the $115,000 mark.Ethereum (ETH): Reclaimed the $4,100 mark, rising by over 20% from its Friday low.

3. Price Action Conclusion and Market Sentiment

The article concludes that the entire event served as a controlled shock absorbed by crypto: Shielding TradFi: The weekend volatility is viewed by traders as a pattern where crypto markets absorb the initial political shocks, allowing the S&P 500 and other traditional equities (TradFi) to potentially open steadily on Monday, largely unscathed.Intentional Whiplash: Many traders now suspect the volatility was intentional, allowing leveraged positions to be closed out (liquidated) before a calmer Monday narrative could take hold. Helius Labs CEO quipped that the crypto markets are an "oracle for Trump's social media mood."Odds Shift: The odds of the 100% tariff being implemented by November 1, tracked on Polymarket, plunged to just 8% after Trump's de-escalation post, implying most participants now view the rhetoric as a bluff rather than a serious threat.

Conclusion

The weekend's dramatic price action confirms that crypto remains highly susceptible to political rhetoric and leveraged liquidations. Trump’s "calm" response after Friday's market crash fueled a quick recovery for both Bitcoin and Ethereum, seemingly confining the chaos to the 24/7 crypto market and preparing for a potentially steady opening of traditional markets. This dynamic reinforces the market's current phase where political theater heavily intersects with digital asset prices.

Disclaimer

This content is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency trading involves high risks, and you should always conduct your own research (DYOR) and consult with a professional financial advisor before making any investment decisions.