Crypto Market Rebounds 5% as U.S.–China Trade Tensions Ease and $550B Flows Back In

**Cryptocurrency Market Surges 5% as U.S.-China Trade Tensions Cool Down**

The cryptocurrency market experienced a significant rebound on Monday, with total market capitalization jumping approximately 5% as diplomatic tensions between the United States and China began to ease. Over $550 billion flowed back into digital assets, including Bitcoin and other major cryptocurrencies, following Friday's dramatic market selloff.

The crypto market recovery came after investors regained confidence amid cooling trade rhetoric between Washington and Beijing. Friday's historic wipeout was triggered by investor panic surrounding potential 100% U.S. tariffs on Chinese goods, which sent shockwaves through global financial markets and the blockchain ecosystem.

This substantial capital inflow demonstrates the cryptocurrency market's sensitivity to geopolitical developments and international trade policies. The rapid bounce-back highlights Bitcoin's role as a digital asset class that responds quickly to macroeconomic factors. DeFi protocols and altcoins also participated in the broad-based recovery, suggesting renewed investor appetite for risk assets.

The $550 billion return to crypto markets underscores the sector's volatility while reinforcing its position as an alternative investment during uncertain economic times.