The global cryptocurrency market is staging a decisive recovery following a historic flash crash on Friday that saw an unprecedented nearly $20 billion in leveraged positions liquidated, Decrypt said in a report.
The mass sell-off was initially triggered by escalating US-China trade tensions after President Donald Trump announced the cancellation of a meeting with Chinese President Xi Jinping and ordered a “massive increase” in tariffs on Chinese imports.
The geopolitical shockwave sent digital asset prices plummeting, resulting in what analysts are calling the largest single-day wipeout in crypto history.
Bitcoin (BTC) plunged from a high of approximately $121,000 to as low as $109,000 in a matter of hours, completely erasing gains from the early-October “Uptober” rally. Ethereum (ETH) dropped sharply to a low of $3,686, while Solana (SOL) briefly touched just above $173.
Data from CoinGlass indicates that roughly $16.7 billion of the estimated total liquidations came from ‘long’ positions.
Over the weekend, as reports suggested a potential softening of the US-China trade rhetoric, the crypto market began a rapid reversal. Analysts quickly suggested the initial rout was an overreaction amplified by excessive leverage in the derivatives market.
Major cryptocurrencies are now posting strong gains, with Bitcoin trading around $115,100 (up 5.0%) and Ethereum surging to approximately $4,138 (a 10.5% daily increase). Altcoins like Solana and BNB also saw significant bounces, rising 12.0% and 16.5% respectively.
