cryptocurrency market Bitcoin recovered on Monday morning after the sharp selling wave that was triggered on Friday last week and deepened on Saturday. 
$115,083.26 It crossed the $114,000 threshold back. The partial recovery gained momentum with signals of a softening in tone in the US-China trade war. On Friday, President Trump’s announcement to increase tariffs on China to 100 percent caused shock in the cryptocurrency and stock markets. BitcoinIt pushed ‘s price below 105 thousand dollars. The increase in purchases in the first trading hours of the week brought to mind the “panic selling-mechanical recovery” cycle. The price curve bears a visual resemblance to the rapid search for equilibrium after the March 2020 shock.
What is the Market Pricing?
After the liquidation wave that occurred over the weekend, spot and cryptocurrency While the volumes in investment-based investment products remained high, investors began to re-price the tariff risk in the dilemma of “will it materialize or will it soften?” Despite Trump’s harsh rhetoric, the news flow that the tone of possible steps has eased as of the new week triggered a rapid relief in cryptocurrencies. Bitcoin’s rise to the $ 114,000 level again indicates that dip-call purchases have come into play as the short-term losses are over.
Friday’s decline coincided with China’s export restrictions on rare earth elements and Washington’s retaliatory tariff announcements. This chain reaction, combined with shallow liquidity, deleveraging, and order execution disruptions over the weekend, resulted in liquidations on a historic scale in the cryptocurrency market. Monday’s recovery was supported by the decline of macro surprises and the partial return of risk appetite.
Similarities and Differences with March 2020
The last collapse in the market is compared to March 2020. However, in both crashes, rapid response purchases and volume explosions were observed following the sudden collapse caused by external shock. Price charts soon left a “V-like” mark. But in 2020 Pandemic During the shock, balance sheet and liquidity conditions were different from today. Today, the ecosystem of cryptocurrency-based investment products is deeper, institutional participation is more widespread, and price levels are on a completely different scale. Therefore, despite the similar price outlook, carrier dynamics are quite different.
The main variable to watch in the short term will be the official discourse on the trade topic and the accompanying dollar liquidity. If tariff uncertainty decreases, Bitcoin’s attempt to hold on to $114,000 may strengthen thanks to intra-Blockchain flow and product-based demand. In the opposite scenario, below $110,000 may be retested. Opinions pointing to the possibility of a one-week reaction following the historically harsh October corrections also provide a basis for pricing.
