Crypto rebounds after record leveraged unwind on tariff fears; SNX overtops

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The cryptocurrency market is witnessing a sharp recovery after last week’s sell-off, which was triggered by former US President Donald Trump’s announcement of imposing 100 per cent tariffs on Chinese imports effective November 1. The move, which rattled global risk assets, led to a steep fall across digital currencies.

 

Bitcoin, the world’s largest cryptocurrency, had scaled a record high of $126,198 on October 7 but slipped below the $111,300 mark as investor sentiment soured following the tariff news. Since then, however, the market has stabilised, with Bitcoin and other major tokens such as Ethereum showing strong signs of recovery.

 

The decline in the crypto markets, according to CoinSwitch Markets Desk, was largely driven by panic-led profit booking and mass liquidations. Over $19 billion in leveraged positions were wiped out, making it the largest deleveraging event in crypto market history. Despite the intense volatility, market participants remained resilient, with total crypto market capitalisation rebounding above $4 trillion.

 

At last check, Bitcoin was quoting at $115,166, higher by 3.01 per cent over the past 24 hours, with a trading volume of $92.5 billion, as per CoinMarketCap data. The token moved in a range of $111,240 to $115,955 during the session. Its market capitalization stood at $2.29 trillion, reinforcing its dominance in the digital asset space. That said, the token is still nearly 8.7 per cent shy of its recent high of $126,198.

 

The $20,000 swing in Bitcoin price, Riya Sehgal, research analyst at Delta Exchange, said, highlights the re-emergence of what markets have dubbed the ‘Trump trade,’ where policy headlines and geopolitical developments increasingly dictate market direction. Last week’s correction, she said, was driven more by sentiment than fundamentals. 

 

“The rebound that followed Trump’s softened stance shows that confidence in digital assets remains intact. We expect continued volatility ahead of key macro events such as Fed Chair Jerome Powell’s upcoming speech and any fresh developments on the US–China trade front,” Sehgal added.

Ethereum outpaces Bitcoin in recovery

Ethereum, the second-largest cryptocurrency by market capitalisation, has posted a stronger recovery than Bitcoin. After falling to a low of $3,798 last week, ETH bounced back sharply and has been trading comfortably above the $4,100 mark.

 

At last check, Ethereum was trading at $4,186, up 9 per cent in the past 24 hours, with a trading volume of $59.86 billion. Its market capitalization stood at $505.48 billion. Despite the recovery, the token is still over 15 per cent below its all-time high of $4,953, which it touched on August 25 this year.

 

Market analysts further attributed the solid recovery in crypto markets to possible de-escalation talks between the US and China, along with short liquidations.

 

“Hopes of possible de-escalation talks between the US and China, along with $259 million in short liquidations, have eased selling pressure, fueling the rally,” said Edul Patel, CEO of Mudrex.

 

For a sustained uptrend, however, Patel believes Bitcoin needs to decisively break above the $120,000 resistance zone, with immediate support seen at $113,500.

 

“Any dovish signal from Jerome Powell regarding rate cuts in his speech this week could further strengthen Bitcoin’s upward trajectory,” Patel added.

Altcoins stage broad-based recovery; Synthetix (SNX) outperfroms

Beyond Bitcoin and Ethereum, several altcoins also registered sharp gains, reflecting a broad-based recovery in the digital asset space. Synthetix (SNX) was the top performer, rallying nearly 90 per cent to $1.87 during the session, according to CoinMarketCap.

 

Other tokens that saw notable gains in the 10–35 per cent range included Bittensor (TAO), Mantle (MNT), World Liberty Financial (WLFI), PancakeSwap (CAKE), Render (RENDER), SPX6900 (SPX), Morpho (MORPHO), Astar (ASTR), Immutable (IMX), BNB (BNB), Curve DAO Token (CRV), Pudgy Penguins (PENGU), Ethena (ENA), Aerodrome Finance (AERO), Pump.fun (PUMP), Bonk (BONK), Pendle (PENDLE), Pepe (PEPE), Ethereum Name Service (ENS), Celestia (TIA), Chainlink (LINK), Sui (SUI), Lido DAO (LDO), Injective (INJ), ether.fi (ETHFI), Dogecoin (DOGE), Sei (SEI), Jupiter (JUP), and Ethereum Classic (ETC).