Cryptocurrencies are trading higher in mid-trading on Monday, October 13, following a sharp sell-off in cryptocurrency markets at the end of last week’s trading. Most currencies fell by more than 10% following US President Donald Trump’s announcement of additional tariffs on China, heightening uncertainty in the markets. Markets recovered early this week and largely recouped these losses, coinciding with a rise in market cap above $4 trillion.
US President Donald Trump’s announcement at the end of last week’s trading caused panic and anxiety among global markets and cryptocurrency traders after he announced that his country would impose new tariffs of 100% on Chinese imports, in addition to the tariffs currently paid by China, starting November 1. This was in response to China announcing new controls on its rare earth metal exports early last week, raising fears of a resurgence of trade tensions and a decline in risk appetite. In addition to trade tensions, the decline in leverage has caused a loss of nearly $20 billion in cryptocurrency bets. Mass direct liquidations due to liquidity shortages and automated selling on platforms like Binance, OKEx, and Babbit have deepened the losses for cryptocurrencies.
In a related development, institutional buying momentum continues. Marathon Digital Holdings, one of the largest Bitcoin mining companies listed on the Nasdaq, took advantage of Bitcoin’s decline and purchased 400 units worth a total of $46.3 million via the FalconX platform.
The combined market capitalization of the cryptocurrency market, which includes more than 17,000 cryptocurrencies, rose 5% on Monday, with a market capitalization of $4.02 trillion, according to Coin Gecko. Bitcoin is trading at $115,112, up approximately 3.08% midday, with its market capitalization rising to $2.294 trillion. Ethereum, the second-largest cryptocurrency, is up approximately 8.47%, trading at $4,149,000, with a market capitalization estimated at $502 billion.
XRP, or Ripple, is losing its fourth place and falling to fifth place in terms of market capitalization, despite its 8.71% rise today. It is trading at $2.60, with a market capitalization estimated at $155 billion.
Dogecoin is up approximately 10.62%, trading at $0.2098, with a market capitalization rising to $31 billion. Cardano is up approximately 11.49%, trading at $0.7190, with a market capitalization estimated at $25 billion. Solana is up about 8.64%, trading at $196 with a market cap of $107 billion, while TRON is up 2.96%, trading at $0.3214 with a market cap of $30 billion.