Confusion over China’s export rules sent markets reeling, but Bitcoin miners led Monday’s sharp recovery
Bitcoin mining stocks staged a strong comeback on Monday, rebounding from last week’s sharp sell-off that rattled both equity and crypto markets. The recovery followed clarifications from Washington and Beijing after U.S. President Donald Trump’s threat of 100% tariffs on Chinese imports sparked a brief global panic.
Shares of leading miners Bitfarms (BITF) and Cipher Mining (CIFR) jumped in double digits, while Hut 8 (HUT), IREN (IREN), and MARA Holdings (MARA) gained more than 4%. Core Scientific (CORZ) and Riot Blockchain (RIOT) also opened higher as investors returned to risk assets.
The turnaround came after Friday’s flash crash, one of the most violent sell-offs in months. Markets plunged when Trump announced sweeping tariffs on China — a move that appeared to stem from a misinterpretation of Beijing’s new export restrictions on rare earth materials used in semiconductors.
In a weekend post, Trump sought to calm investors, writing, “Don’t worry about China, it will all be fine!” U.S. Treasury Secretary Scott Bessent later confirmed that the 100% tariffs “don’t have to happen,” effectively walking back the remarks.
“The confusion shows how quickly policy comments can move markets,” said analysts from The Kobeissi Letter, noting that the panic was triggered by misunderstanding rather than new regulation.
Crypto market volatility breaks records
While mining stocks bounced back, digital assets endured historic turbulence. The weekend wipeout saw an estimated $19 billion in leveraged positions liquidated, the largest crypto liquidation event on record.
Bitcoin (BTC) held firm near $114,000, while altcoins experienced deeper drawdowns before stabilizing. Roughly half of all liquidations occurred on Hyperliquid, with Bybit and Binance also posting significant losses.
Binance faced additional scrutiny after some token prices briefly displayed as zero, later blamed on a user interface bug. Meanwhile, Ethena’s synthetic dollar (USDe) temporarily lost its peg on Binance but remained stable elsewhere.
“The price discrepancy was isolated to a single venue facing liquidity issues,” clarified Guy Young, founder of Ethena Labs, emphasizing that on-chain systems remained unaffected.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.