Crypto Market Surges After Historic $19B Selloff
October 13, 2025 — Global Markets
The cryptocurrency market experienced a remarkable rebound on Monday, with Bitcoin, Ethereum, XRP, and Dogecoin leading a strong recovery after one of the most intense selloffs in the asset class’s recent history. The total market capitalization surged back to nearly $4 trillion following a staggering $19 billion liquidation event over the past weekend.
This market revival follows a brutal weekend selloff that saw more than 1.6 million traders liquidated, triggered by a combination of renewed global trade tensions and technical failures that amplified forced sales on leveraged positions. Bitcoin, which fell below $105,000 during the selloff, climbed back to hover near $116,000 as institutional interest and support from key technical levels steadied the market.
The backdrop of this volatile episode was shaped notably by President Donald Trump and Vice President JD Vance’s signals of openness to easing US-China trade tensions. Trump’s conciliatory remarks, underscoring “the U.S.A wants to help China, not hurt it,” helped calm markets previously rattled by announced new tariffs, encouraging renewed risk appetite among investors.
Ethereum displayed one of the most robust rebounds among the top cryptocurrencies, surging more than 11% to reclaim $4,157. Technical analysis shows that Ethereum’s 200-day exponential moving average held as a critical support level during the crash, allowing a strong bounce and signaling resilience for the coin’s near-term outlook. Investors are cautiously optimistic about Ethereum potentially reaching resistance targets near $4,800.
XRP also posted gains, recovering from the lowest price levels seen since late 2024. However, the coin remains below its 200-day moving average and consolidation points, indicating that it still faces resistance hurdles before confirming a sustained upward trend.
Dogecoin has emerged as a standout performer amid the bounceback, rising nearly 10% in 24 hours. The cryptocurrency’s strong recovery has enticed bargain hunters, reaffirming its place in the altcoin resurgence narrative, especially after holding firm at critical support zones during last week’s crash.
Market strategists emphasize that one of the key forces underpinning the recovery has been a significant reset in leveraged positions. The liquidation event served to clear excessive risk, lowering funding rates to levels not seen since the 2022 FTX collapse, thus creating a more stable environment for price growth in the near term.
Additionally, increasing inflows into Bitcoin and Ethereum exchange-traded funds (ETFs) continue to reflect healthy institutional demand. Though the market remains fragile, this institutional support is viewed by analysts as a vital pillar for sustained recovery and renewed investor confidence.
Joel Kruger, strategist at LMAX, noted, “While the recovery is encouraging, the crypto market infrastructure remains sensitive to external shocks, especially amid ongoing geopolitical uncertainty. Traders should remain vigilant as volatility can reappear with changing global trade dynamics.”
This weekend’s forced liquidations wiped out over $380 billion in value within hours, marking it as one of the sharpest market corrections in crypto history. Yet, experts argue that this painful event could be the “cleanest setup” for the next major rally, with the market now better positioned to handle volatility after the forced deleveraging.
The coming weeks will be critical, as Bitcoin attempts to transcend resistance levels around $120,000 and Ethereum eyes a push toward its annual highs near $5,000. Meanwhile, altcoins like Dogecoin and XRP will be watched closely for signs of sustained momentum or renewed downward pressure.
The ongoing global economic environment, regulatory developments, and any shifts in US-China trade relations are likely to remain major market drivers. The crypto community is bracing for potential continued volatility but also eyeing opportunities for growth as institutional adoption and new financial products expand.
As this developing story unfolds, investors and analysts continue to parse data and news, balancing optimism with caution in what remains an evolving and dynamic market landscape.
Disclaimer: The content provided is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are subject to market risks. Readers should conduct their own research or consult a professional financial advisor before making investment decisions.