CoinGecko: crypto's combined market cap rises 6%+ to hit $4T, recovering from a brutal weekend selloff as President Trump tries to calm US-China trade war fears
Most major cryptocurrencies rebounded from steep losses suffered over a brutal weekend selloff, as President Donald Trump sought …
Context & Ripple Effects
The rebound follows a tariff-threat-driven rout that produced more than $19.1 billion in crypto liquidations the day before. Earlier 2025 coverage had already shown major tokens and crypto-linked equities reacting sharply to U.S. tariff announcements, including steep declines in bitcoin, ether, Solana, Coinbase, and MicroStrategy shares.
The episode matters because it ties a broad crypto valuation swing to shifting expectations around U.S.-China trade policy, rather than to a crypto-specific development.
First-order effects
- Major cryptocurrencies recover part of the weekend’s losses, lifting the aggregate market value back to roughly $4 trillion.
- Trump’s effort to ease trade-war fears becomes an immediate sentiment driver for crypto traders after the tariff threat triggered the selloff.
Second-order effects
- The rapid reversal reinforces macro and policy headlines as key inputs for crypto pricing, alongside token-specific news.
- Crypto-linked public companies and leveraged market participants may face continued volatility when trade-policy signals change, as prior tariff announcements also coincided with declines in Coinbase and MicroStrategy shares.
Third-order effects
- If this pattern persists, crypto’s market behavior will look increasingly integrated with global risk-asset reactions to geopolitical and trade policy shocks.
- That integration may narrow the practical distinction between crypto as a separate speculative market and crypto as a macro-sensitive asset class, even as its earlier tariff-driven bitcoin decline illustrates the downside of that linkage.
The trend: Crypto is becoming more immediately responsive to global macro-policy signals, with trade rhetoric capable of moving the market alongside crypto-native catalysts.