The crypto market staged a powerful rebound on Saturday after President Donald Trump and Vice President JD Vance signaled a willingness to negotiate with China over tariffs, easing fears of a deepening trade war.
Trump told reporters, “Don’t worry about China, it will all be fine. Xi doesn’t want a depression for his country, and neither do I.” The reassurance rippled across global markets, triggering a sharp surge in risk assets and a wave of short liquidations totaling $225 million in just two hours, according to Watcher.Guru.
JUST IN: 🇺🇸🇨🇳 President Trump says "don't worry about China, it will all be fine."
Xi Jinping "doesn't want a depression for his country, and neither do I." pic.twitter.com/Ucb4DHqglC
— Watcher.Guru (@WatcherGuru) October 12, 2025
Bitcoin and Ethereum Lead the Charge
Bitcoin (BTC) climbed 2.5% in the past 24 hours to $114,410, recovering from last week’s flash crash and reaffirming its dominance. Ethereum (ETH) jumped nearly 8% to $4,125, regaining key resistance levels as investors rotated back into high-liquidity assets.
BNB and Solana Extend Gains
BNB surged 12.8% to $1,290, outperforming most majors amid Binance’s ongoing market stabilization efforts. Solana (SOL) rose 6.2% to $193.9, continuing its recovery streak fueled by strong developer activity and renewed institutional interest.
XRP and Dogecoin Stay Strong
XRP advanced 1.9% to $2.5, while Dogecoin (DOGE) spiked 8%, driven by renewed retail inflows and optimism surrounding broader market sentiment.
Altcoins Join the Rally
Other top performers included TRON (TRX) up 1%, Cardano (ADA) up 6%, and Chainlink (LINK) up 7.5%. Newcomer Hyperliquid (HYPE) rose 6%, reflecting increased attention to decentralized trading protocols amid last week’s exchange disruptions.
$255 Million in Shorts Wiped Out in 4 Hours
The market-wide short squeeze intensified the rally, liquidating hundreds of millions in bearish positions. Analysts noted that as confidence returned following Trump’s comments, traders rushed to cover shorts, accelerating price rebounds across Bitcoin, Ethereum, and BNB.
With diplomatic signals improving and crypto sentiment recovering fast, the market’s focus now shifts to whether this rally can hold, or if it’s just a calm before the next macro-driven storm.