The Bitcoin price has rebounded back above the $115K mark as market fears over US-China tariffs have cooled, sparking a relief rally across risk assets, including crypto. This development comes after a massive liquidation event on Friday triggered by US-China trade tensions, which sent Bitcoin tumbling from around $121,560 on Oct. 10 to below $103,000 on Sunday.
Market Rebound and Tariff Tensions
According to data from crypto.news, Bitcoin (BTC) bounced back above the $115K resistance level on Monday morning Asian time. The market crash, which sparked fears of a renewed trade war and rattled crypto markets, led to around $20 billion in leveraged liquidations. Such tariff blows exchanged between major economies typically spark fears of a global trade war, pushing investors away from riskier assets like cryptocurrencies.
The move, aimed at tightening export controls on rare earth minerals essential for chip production, was announced by U.S. President Donald Trump, who introduced a 100% tariff on Chinese imports, potentially starting as early as the beginning of November. This sparked confusion and panic across the market, with some reports suggesting it was a coordinated attack after Binance’s interface briefly showed several altcoins trading at zero.
Shift in Market Sentiment
However, as of press time, market sentiment around Bitcoin appears to be shifting for the better. The Crypto Fear & Greed Index has climbed out of “extreme fear” territory into plain old “fear,” suggesting that while investors are still wary, the mood is gradually improving. Notably, alongside Bitcoin’s rebound, major altcoins such as Ethereum (ETH), BNB (BNB), XRP (XRP), and Solana (SOL) were also trading in the green, posting gains of 7–13%.
The recovery helped lift the total global crypto market capitalization back above $4 trillion. The turnaround began shortly after former President Trump eased tensions with a recent Truth Social post, saying “not to worry about China” and adding that the U.S. wants to “help China, not hurt it.” The remarks appeared to calm fears of a deepening trade war, offering a relief rally across risk assets, including crypto.
Polymarket data now shows that the probability of a 100% tariff on China being implemented by Nov. 1 has dropped to 17% as of press time. As of press time, Bitcoin was trading at $114,570, up 11% from its recent crash but still 9% lower than its all-time high of $126,080.
Bitcoin’s Golden Cross
For now, sentiment around Bitcoin has turned bullish again, with several analysts projecting further upside for the flagship crypto. Among those turning bullish was crypto analyst Mister Crypto, who noted that Bitcoin is currently “retesting the golden cross,” a classic bullish pattern that has historically preceded major rallies.
“The setup looks incredibly strong,” he wrote, adding that if Bitcoin manages to hold above the key level, its price could “absolutely explode” in the coming weeks. As per the chart, the last time Bitcoin formed this signal, it went on to surge 2,200% in 2017 and 1,190% in 2020.
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