- Bitcoin recovered above $114,000 on Sunday after reports indicated the U.S.–China tariff threat was less likely, prompting traders to step back into the market.
- Ethereum and several major altcoins rose as markets stabilized, reflecting a short-term recovery across top tokens after the selloff.
- The downturn forced roughly $19 billion in liquidations within about 24 hours, underlining how much leverage was in derivatives positions.
Bitcoin regained momentum on Sunday afternoon after a turbulent week in global markets, surging from below $112,000 to a session high of $114,500 before retracing slightly. The rally followed reports that tensions between the United States and China might be easing, leading to renewed optimism among traders. Analysts from The Kobeissi Letter indicated that the previous panic may have been driven by misinterpreted statements about China’s export controls on rare earth materials. Their clarification that the restrictions were not a full export ban calmed investors and helped restore confidence. U.S. Vice President JD Vance later reinforced this sentiment by describing ongoing friendship between Trump and Xi, suggesting that Washington prefers negotiation over escalation — a tone that helped Bitcoin rebound sharply after one of its steepest selloffs of the year.
Bitcoin price jumps as tariff fears ease
Bitcoin pushed through the mid-$114,000 area after market participants reassessed Friday’s headlines, which had knocked the asset under $112,000 during the selloff. The intraday rebound coincided with reporting that the 100% tariff threat looks less likely as a near-term baseline, and with commentary that the prior drop may have been driven by a misunderstanding of China’s policy scope. The tape action tracked those headlines closely, with Ethereum posting a quick rise and majors stabilizing after two volatile sessions. Price data during the session showed a local high near $114,500 before a minor pullback.
Market context and rare earths clarification
China’s latest rare earth measures added five more elements to existing export controls and tightened rules on related equipment, but officials also indicated that applications “meeting regulations” can still be approved. That detail shaped the weekend narrative and helped soften the most severe interpretations from Friday. The Kobeissi Letter argued that markets may have misread the scope of the controls, which, according to reporting, are not a blanket ban. This framing lowered odds that a 100% U.S. tariff will arrive exactly as threatened, reducing immediate tail risk across risk assets.
Leverage reset and liquidations across venues
The late-week slump was brutal for leveraged positioning. Multiple outlets tallied more than $19 billion in liquidations within roughly a day, a scale rarely seen in digital assets. Data breakdowns pointed to heavy losses in long positions on Bitcoin and Ethereum, alongside sizable unwinds on Solana and other large caps, as open interest collapsed and auto-deleverage mechanisms kicked in across perps venues. The wipeout reset positioning into the weekend and set the stage for a sharper snap-back once the geopolitical tone cooled.
Bitcoin outlook as officials stress negotiation
Weekend comments from JD Vance signaled that Washington still sees room for dialogue with Beijing, noting a “friendship” between Trump and Xi and saying he hopes the U.S. will not need to use “leverage.” Those lines helped frame Sunday’s move as a relief bounce rather than a trend break. Into the week, traders will track any concrete follow-ups on tariffs or export rules, and whether officials pivot from rhetoric to detailed policy text. For Bitcoin, the near-term focus sits on whether buyers can defend the $110,000–$112,000 region that failed on Friday and now flips into a reference band, while acceptance above the mid-$114,000s would keep recovery momentum intact.
Conclusion
Bitcoin’s recovery to above $114,000 marks a significant shift in sentiment following days of fear over trade friction and a wave of record liquidations. The market’s reaction highlights how quickly global politics can move digital asset prices, especially after leveraged traders suffered $19 billion in forced sales. The easing tone from both Washington and Beijing allowed traders to reenter risk positions, with Ethereum and other altcoins also stabilizing. Analysts view the rebound as a technical and psychological correction after an overreaction to incomplete tariff headlines. For now, Bitcoin remains supported by optimism that escalation is off the table, though traders are watching whether this calm will hold through the week.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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