The cryptocurrency market is showing signs of recovery after the weekend’s bloodbath. Markets registered one of the largest selloffs in history after President Trump announced 100% tariffs on Chinese imports and new export controls on software. As a result, Bitcoin (BTC) plummeted to a low of $102,000 on Binance before recovering to reclaim $110,000. However, markets have put the weekend’s carnage behind them and have started the week in positive territory. BTC is up over 3% and has reclaimed the $115,000 level. The flagship cryptocurrency is trading around $115,305, up over 3% in the past 24 hours. Meanwhile, Ethereum (ETH) has reclaimed the $4,000 level after falling to a low of $3,504. The altcoin rallied late on Sunday and is up almost 9% over the past 24 hours, trading around $4,174. Ripple (XRP) has also recovered after plunging to a low of $1.849, and is up over 9%, trading around $2.61. Meanwhile, Solana (SOL) is up nearly 10% as it looks to reclaim the $200 level. Dogecoin (DOGE) is up over 11%, while Cardano (ADA) is up 10.70%, trading around $0.718. Chainlink (LINK) also made a strong recovery, up 12%, while Stellar (XLM) is up over 6%. Hedera (HBAR) , Litecoin (LTC) , Toncoin (TON) , and Polkadot (DOT) have also registered substantial rallies over the past 24 hours. US Government Shutdown Enters Third Week The US government shutdown has entered its third week, leaving sixteen crypto ETFs in limbo should it continue into November. The US government came to a standstill on October 1, when Republicans and Democrats failed to reach a funding agreement. The shutdown has caused several government agencies, including the Securities and Exchange Commission (SEC), to operate with only essential staff. Meanwhile, the crypto industry, which expected a flood of ETF approvals in October, may have to wait a little longer as deadlines pass with no action taken. “Once the government shutdown ends, spot crypto ETF floodgates open… Ironic that growing fiscal debt & usual political theater are holding these up. Exactly what crypto is targeting.” US-China Representatives Ease Trade Tensions Representatives from the US and China have moved to calm the heated rhetoric around trade ties after tension flared this week. President Trump announced 100% tariffs on Chinese goods and new export controls on key software after China moved to place restrictions on rare earth minerals, crucial for tech and AI. China’s Ministry of Commerce indicated it is willing to negotiate on its rare earth export control proposal and other trade discussions. The announcement came after President Trump stated in a post on Truth Social, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!” President Trump Considering Changpeng Zhao's Pardon President Trump is reportedly considering pardoning Binance founder Changpeng Zhao, amid ongoing discussions with the White House. According to individuals close to Zhao, the former Binance chief could soon receive a pardon after months of internal discussions at the White House. According to Charles Gasparino, senior business correspondent at FOX Business, discussions between Zhao’s representatives and White House officials have intensified in recent weeks. Gasparino stated on X, “People close to CZ, the former Binance chief ... say discussions inside the White House are heating up on the possibility of a pardon from. Many Trump insiders believe the fraud case against [CZ] was pretty weak, and certainly not something that merited a felony conviction and jail time.” Zhao was one of the most influential figures in the crypto ecosystem. He was convicted of money laundering by the US Department of Justice, served time, and paid $4.3 billion in fines. Zhao remains the largest individual shareholder at Binance, and a presidential pardon could clear the way for a formal return to the exchange he founded in 2017. Trader Who Shorted Bitcoin (BTC) Opens More Bearish Positions A crypto trader who made $192 million after a suspiciously timed bet just before the market crash has opened up more bearish positions. The whale trader has opened a $163 million leveraged perpetual contract to short Bitcoin (BTC) . The position is currently valued at $3.5 million in profit, and will be liquidated if BTC crosses $125,500. The trader caught the community’s attention after opening a short position just minutes before President Trump’s tariff announcement, which sent the markets plummeting. As a result, the trader in question pocketed $192 million in profits. The community believes the trader is an “insider whale” because of the timing of the trades. Some members believe the trader was the reason for the leverage flush that crashed the market. “The crazy part is that he shorted another nine figures worth of BTC and ETH minutes before the cascade happened. And this was just publicly on Hyperliquid, imagine what he did on CEXs or elsewhere. I’m pretty sure this guy played a huge role in what happened today.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) and the broader cryptocurrency market recovered on Monday after the weekend’s collapse, which saw the market plunge and wipe out billions in leveraged positions. The market was reeling since Friday and collapsed after President Trump announced 100% tariffs on Chinese goods and new export controls for software. BTC fell to an intraday low of 102,000 on Binance before recovering and closing the day around $112,980. Selling pressure persisted on Saturday as the price fell nearly 2% to $119,768. However, markets rebounded on Sunday, rising almost 4% to reclaim $115,000 and settle at 115,067. BTC is marginally up during the ongoing session, trading around $115,305. BTC will look to decisively reclaim $116,000 as positive sentiment returns after the weekend crash. A tariff announcement by President Donald Trump was all it took to spark chaos in the market. However, the recovery has seen BTC recoup almost 50% of its losses already. The Kobeissi Letter stated, “If you include the after-hours drop-in futures, the S&P 500 is up +120 points at the open. This has effectively erased 50% of the decline seen late last week. Now, we await more guidance from the Trump Admin.” The cryptocurrency market has recouped nearly half a billion dollars since Friday’s crash. With some traders timing the market perfectly, the Kobeissi Letter described the event as “one of the largest wealth transfers in crypto history.” Meanwhile, BTC traders face a dilemma this week, wondering if the worst is over or whether there is more downside to come. One trader believes there is more downside, stating in a post on X, “Last week’s flash crash perfectly bounced off our diagonal uptrend support from August 2024 at 40k. I’m looking for at least a retest of 108, but as many of you know, HTF has bearish indications. Will check 1D when we get an intra support retest at 107-108.” However, the flagship cryptocurrency has made a strong recovery and is trading in positive territory. On-chain activity shows that volatility has cooled, and traders anticipate a positive showing this week, with market watchers expecting a relief bounce. BTC trader Skew noted in a post on X, “Can see a case of a relief bounce going into weekly open / futures open. Both always bring important flows from the aspect of a macro backdrop, as we currently have. Plus thin market atm so careful with margin positions especially in alts.” Fellow trader HTL-NL stated that while markets are unpredictable, the possibility of a crash was low. “You never know what the W close and next week will bring, of course, especially since legacy barely had time to respond to Trump. However, I am not overly worried. Everything was poised for a correction anyway, but it all got amplified, and we had a system breakdown.” BTC traded in bullish territory last week, and began the previous week with a 1.41% increase to $122,318. The price registered a marginal rise on Saturday before reaching an intraday high of $125,750 on Sunday. BTC ultimately ended the weekend at $123,520, up 0.87%. Buyers retained control on Monday as the price rose 0.97% and settled at $124,720, but not before reaching an intraday high of $126.296. BTC lost momentum on Tuesday, falling almost 3% to $121,393. The price recovered on Wednesday, rising nearly 2% and settling at $123,343. Source: TradingView Selling pressure returned on Thursday as BTC fell 1.32% to a low of $119,713 before settling at $121,714. BTC and the crypto market crashed on Friday after President Trump announced 100% tariffs on Chinese goods and new export controls for software. The announcement was in retaliation for China's imposing restrictions on rare earth mineral exports. As a result, BTC plunged to $102,000 on Binance before recovering and settling at $112,980. Selling pressure persisted on Saturday as the price fell almost 2% to $110,768. Despite the overwhelming selling pressure, markets recovered on Sunday. As a result, BTC rose nearly 4% to reclaim $115,000 and settle at $115,067. The price is marginally up during the ongoing session, trading around $115,220. However, the MACD remains bearish, indicating that sellers still have the upper hand. Ethereum (ETH) Price Analysis Ethereum (ETH) is marginally up during the ongoing session as it recovers after Friday’s crash. The world’s second-largest cryptocurrency plunged to a low of $3,444 on Friday as markets crashed before recovering to settle at $3,836. Selling pressure persisted on Saturday as the price fell over 2% to $3,752. Despite the selling pressure, ETH rebounded on Sunday, rising almost 11% to reclaim $4,000 and end the weekend at $4,158. While altcoin reclaimed $4,100 on Sunday, it has struggled to build momentum during the ongoing session. ETH’s recovery has eased some of the losses from Friday’s crash, with over $3.80 billion in leveraged long positions liquidated. However, analysts believe ETH reclaiming $4,000 marks the end of the short-term correction. Additionally, the funding rate on ETH perpetual futures has dropped to -14%. This means short traders are paying to keep their positions open. This is an unsustainable scenario in the long term. The setup also indicates growing fears that some market makers or exchanges could be facing solvency issues. There is also uncertainty about whether exchanges will reimburse traders for mismanagement linked to cross-collateral margins and oracle pricing. Analysts expect markets to remain cautious until a detailed post-mortem of the crash and its impact has been issued. However, ETH monthly futures absorbed the shock in less than two hours, quickly regaining the minimum 5% premium required for a neutral market. According to market experts, the lack of demand for leveraged long positions in perpetual contracts reflects weak product design rather than strong bearish sentiment. However, uncertainty is expected to persist until market makers regain confidence. However, analysts point out that BTC and ETH did relatively better than other altcoins. “BTC and ETH did relatively well compared to the long-tail of alts, which nuked 70% or more, with some even going down 95% or more. I'm not usually into conspiracies, but clearly this was not normal market behavior.” ETH started the previous weekend in positive territory, registering a marginal increase on Friday. However, it fell 0.55% on Saturday and settled at $4,487. Positive sentiment returned on Sunday as the price rose 0.62% to reclaim $4,500 and settle at $4,515. Buyers retained control on Monday as ETH rose almost 4% to cross $4,600 and settle at $4,685. Despite the positive sentiment, the price fell by over 5% on Tuesday, settling at $4,451. ETH recovered on Wednesday, rising 1.68%, but was back in the red on Thursday, dropping 3.47% and settling at $4,369. Source: TradingView ETH plunged to an intraday low of $3,444 on Friday after President Trump announced 100% tariffs on Chinese imports and export controls on key software. It recovered from this level to settle at $3,836, ultimately dropping over 12%. Selling pressure persisted on Saturday as the fell 2.21% to $3,752. ETH recovered on Sunday, rising nearly 11% to reclaim $4,000 and settle at $4,158. ETH is marginally up during the ongoing session, trading $4,165. Solana (SOL) Price Analysis Solana (SOL) is looking to reclaim the $200 level after falling to a low of $170 during Friday’s flash crash. The altcoin ultimately ended the day at $188 but continued dropping on Saturday, falling nearly 6% to $177. Markets recovered on Sunday, and SOL rose almost 11% to $197. However, the price is marginally down during the ongoing session, trading around $195. Analysts had warned that SOL risked losing $200, considered SOL’s make-or-break level. The altcoin is struggling to build momentum during the ongoing session. However, analysts remain optimistic about SOL’s prospects and an end-of-year rally that could take its value past $300. One trader stated that another pullback could be expected before SOL pushes above $300. “$320 remains the target. Pull back first, though.” SOL started the previous weekend in the red, dropping nearly 1% on Friday and over 2% on Saturday to settle at $227. The price recovered on Sunday, reaching an intraday high of $237 before settling at $238. Buyers retained control on Monday, rising almost 2% and settling at $232. Despite the positive sentiment, SOL returned to bearish territory on Tuesday, dropping over 5% to $220. Despite the overwhelming selling pressure, the price recovered on Wednesday, rising over 4% to $229. Source: TradingView Selling pressure returned on Thursday as SOL fell 3.52% to $221. Selling pressure intensified on Friday as markets tanked. As a result, SOL plunged to an intraday low of $170 before settling at $188, ultimately dropping over 14%. Sellers retained control on Saturday as the price fell almost 6% to $177. SOL made a strong recovery on Sunday, rising nearly 11% and settling at $197. SOL is down over 1% during the ongoing session, trading around $194. Polkadot (DOT) Price Analysis Polkadot (DOT) traded in the red over the previous weekend, dropping 2.96% on Saturday and 1.36% on Sunday to settle at $4.13 after reaching an intraday high of $4.37. Despite the overwhelming selling pressure, the price recovered on Monday, rising over 6% to reclaim $4.30 and settle at $4.39. DOT was back in the red on Tuesday, dropping nearly 6% to $4.14. The price recovered on Wednesday, rising 1.28%, but returned to the red on Thursday, falling almost 3% to $4.07. Source: TradingView DOT plunged to an intraday low of $2.86 on Friday as markets collapsed. However, it recovered from this level to reclaim $3 and settle at $3.13, ultimately dropping a staggering 23%. Selling pressure persisted on Saturday as the price fell by over 4% to $3. DOT recovered on Sunday as part of a broader market recovery, rising over 8% and settling at $3.24. The price is up over 1% during the ongoing session, trading around $3.28. Jupiter (JUP) Price Analysis Jupiter (JUP) ended the previous weekend in the red, registering a marginal decline to $0.454. The price recovered on Monday, rising 3.53% to $0.470. Despite the positive sentiment, JUP lost momentum on Tuesday, falling nearly 6% to $0.443. Buyers returned to the market on Wednesday with the price rising 1.66% to $0.450. Source: TradingView Selling pressure returned on Thursday as JUP fell over 4% and settled at $0.431. Bearish sentiment intensified on Friday as the price plunged to an intraday low of $0.107. JUP rebounded from this level to settle at $0.329, ultimately dropping nearly 24%. Despite the overwhelming selling pressure, the price recovered on Saturday, rising 2.31% to $0.336. Bullish sentiment intensified on Sunday as JUP rose almost 11% and settled at $0.372. JUP is marginally down during the ongoing session, trading around $0.372. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
