- US President Trump assured that the US and China are working on a middle ground in their rocky trade relations, catalyzing the recovery of the crypto market from a crash during the weekend.
- The same whale that gained from shorts last Friday placed around $16 million 10x leveraged bet against the market, igniting caution for investors.
US President Donald Trump’s tirade on Friday tanked the markets. The heaviest hit, however, was the crypto market, amplified by leveraged shorts. The crypto market crash resulted in over $19 billion in liquidations, with longs accounting for more than $16 million in wrecked trades.
On Friday, Trump retaliated against China’s “extraordinarily aggressive position on trade” involving export controls on rare earths, which are critical for computers, mobile devices, communications, EVs (electric vehicles), and other tech-dependent industries. The US announced a 100% additional tariff on top of the 30% it already enforces against China. It also includes export controls by November.
Additionally, Trump threatened to back out of the scheduled meeting with China’s President Xi Jinping. He later clarified that he didn’t cancel the event, but it gave him the impression that it would no longer proceed due to the hostility between the Western and Eastern superpowers.
Crypto Market Breathes a Sigh of Relief
On Sunday, the crypto market breathed a sigh of relief when Trump told people not to worry about China because “it will all be fine.” He stated that Xi “just had a bad moment” and is confident that the US and China will eventually sort out the matter because neither wants a depression in their economies. Trump highlighted, “The USA wants to help China, not hurt it.”
Many saw it as Trump chickening out of his previous stance. Meanwhile, others complained that his latest rhetoric makes the crypto crash all for nothing.
Nevertheless, Trump’s softer tone significantly improved investor sentiment as the Crypto Fear & Greed Index recovered from Sunday’s 24-point “Extreme Fear” score to Monday’s 38-point “Fear” rating. Moreover, it pushed Bitcoin (BTC) back to roughly $116K in the last 24 hours, with other altcoins showing similar rebounds.
Is There Another Looming Crypto Market Crash?
The wallet address 0xb317d2bc…b07283ae, the same one that reportedly cashed out $150 million in profit from a short position in the recent crypto market crash, has surprisingly placed another bet worth around $16 million based on Hypurrscan data.
The information reveals that the trader leveraged the short position on Bitcoin by 10x at Hyperliquid (HYPE) with a strike price of $123,500. This takes the trade’s notional value to $160 million.
The anonymous whale’s bold move is causing another stir in the crypto market following a successful bet during the weekend. Some crypto community members are even throwing in the possibility that the trader may possess insider information on looming announcements from the government.
On the other hand, others dismissed the trader’s success as mere luck, with several analysts even pointing out the fact that the dip was already present in some technical trends due to many investors making a profit from Bitcoin, Ethereum (ETH), BNB, and other digital assets recording a series of all-time highs lately.
