Emotional Reset in the Crypto Market: Upward Trends Continue

The crypto markets showed signs of recovery over the weekend following a sharp collapse on Friday night. On Friday, Donald Trump's announcement of a 100% tariff on imports from China triggered the largest $19 billion liquidation wave in the history of the crypto world. However, two days later, softening messages from Washington and Beijing contributed to the markets regaining their balance.

Over the weekend, Bitcoin price rose by 2.7% to approximately $114,665. Additionally, Ethereum gained 8.3% to reach $4,135, while BNB attracted investors' interest with a 13.9% increase. Alternative cryptocurrencies such as Cardano and Dogecoin also showed around a 10% rise, leading the recovery.

Justin d’Anethan, head of partnerships at Arctic Digital, described the decline as a “major emotional reset.” D’Anethan emphasized that many investors were punished during both the drop and the sudden rise, but noted that the long-term upward trend had not been disrupted. “ETF inflows are strong, the amount of Bitcoin on exchanges is at cyclical lows, and the story has only strengthened after this collapse,” he stated.

Record losses were experienced not only on centralized exchanges but also on decentralized platforms like Hyperliquid. On this platform, over 6,300 wallets were liquidated. The automatic debt liquidation mechanism kicked in once the insurance funds were exhausted, limiting losses but accelerating the decline.

The recovery began with the announcement from the Chinese Ministry of Commerce that export restrictions on rare earth elements would not be a general ban. Trump's statement that “the U.S. does not want to harm China; it wants to help” created new relief in the markets. BTSE COO Jeff Mei commented, “If U.S.-China tensions do not escalate into a full-blown trade war, the crypto market could move towards all-time highs again.”

In the short term, interest rate decisions and risk appetite will determine the direction. According to analysts, if central banks revert to easing policies, Ethereum and yield-generating tokens may stand out. For investors, it is important to carefully monitor the recovery process and keep track of developments in the markets.