The crypto market is showing signs of life again after a massive weekend crash caused by political news. Over the weekend, the market saw one of the biggest selloffs in history following former President Trump’s announcement of 100% tariffs on Chinese imports and new restrictions on U.S. software exports. This sent Bitcoin (BTC) crashing to $102,000 on Binance before bouncing back to over $115,000. Now, Bitcoin is trading around $115,305, up more than 3% in the last 24 hours, signaling a short-term recovery.

Ethereum (ETH) also bounced back after dropping to $3,504. It surged nearly 9% and is currently trading above $4,170. Ripple (XRP) followed the same path, rebounding from a low of $1.849 to around $2.61 — up over 9%. Other major altcoins like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) are also on the rise. SOL jumped almost 10%, DOGE rose over 11%, and ADA gained more than 10%, now trading at about $0.718. Chainlink (LINK) is up 12%, and Stellar (XLM) gained over 6%. Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) also posted strong gains.

However, the positive price movement comes amid ongoing uncertainty in the U.S. government. The shutdown has now entered its third week, freezing progress on crypto exchange-traded fund (ETF) approvals. Sixteen ETFs are in limbo due to key agencies like the SEC operating with limited staff. Many in the crypto space were hoping for ETF greenlights in October, but delays are likely until the government fully reopens.

In global news, tensions between the U.S. and China have started to cool down slightly. After Trump’s harsh tariff announcement — which was retaliation for China’s move to restrict rare earth mineral exports — both sides are now showing interest in negotiations. China’s Ministry of Commerce said it’s open to talking about easing export controls. Meanwhile, Trump posted on Truth Social that he believes China doesn’t want an economic crash and emphasized that the U.S. aims to help, not hurt.

In a surprising development, there are reports that Trump may consider pardoning Changpeng Zhao (CZ), the founder of Binance. Zhao was previously convicted of money laundering and fined $4.3 billion but remains Binance’s largest shareholder. If a pardon happens, he could make a return to Binance leadership. According to FOX Business journalist Charles Gasparino, discussions between CZ’s team and the White House are gaining momentum, with some insiders believing the case against him was weak.

On another front, a mysterious crypto trader who made $192 million by perfectly timing a market short before Friday’s crash has placed new bearish bets against Bitcoin. This whale trader opened a $163 million short position that’s already $3.5 million in profit and will be liquidated if BTC crosses $125,500. The timing of this trade has led many in the community to suspect insider knowledge. Traders believe this individual may have triggered the market-wide selloff.

Bitcoin has managed to recover nearly half of its losses from last week’s crash. After falling from over $126,000 to $102,000, BTC rebounded and is now trading above $115,000. Analysts say if BTC can break above $116,000 again, it might build more bullish momentum. The Kobeissi Letter noted that this market event might be one of the largest wealth transfers in crypto history.

Still, uncertainty remains among traders. Some think the worst is over and expect a continued relief rally. Others believe there’s more downside ahead. One trader pointed out that Bitcoin bounced off a key support trendline from August 2024 and expects another test around $107,000–$108,000.

Ethereum has also seen recovery after its crash last week. It dropped below $3,450 but quickly climbed back above $4,000 — a crucial psychological level for traders. Despite weekend volatility, ETH is now trading around $4,165. Experts say reclaiming $4K may signal the end of a short-term downtrend. However, funding rates have turned negative — short sellers are paying to hold their positions — which isn’t sustainable long term and could signal further volatility ahead.

There are also concerns about whether exchanges will compensate users affected by margin liquidation errors during the crash. So far, ETH futures markets have recovered quickly, and analysts say the lack of interest in leveraged longs is more about product design than bearish sentiment.

Compared to other altcoins, BTC and ETH performed relatively well during the crash. Many smaller altcoins dropped over 70%, with some losing up to 95% of their value.

Solana (SOL) fell sharply to $170 during Friday’s panic selloff but rebounded nearly 11% on Sunday to trade around $195. While it’s still below its key $200 level, some analysts remain bullish about SOL’s future and expect it could eventually reach $300 or even $320 after another pullback.

Polkadot (DOT) dropped hard too — falling from over $4 to as low as $2.86 on Friday before recovering to above $3 on Sunday. DOT is now trading around $3.28 as part of the broader market rebound.

Jupiter (JUP) experienced a wild swing last week as well, plunging from above $0.45 to an intraday low of just $0.107 before bouncing back to $0.372 on Sunday. The token is holding steady during the current session.

Overall, while prices are recovering across major cryptocurrencies like Bitcoin, Ethereum, Solana, and others, there’s still caution in the air. Market watchers are waiting for more clarity from both regulators and global political leaders before declaring this rebound as a full recovery.

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