Shares in Bitcoin mining firms surged on Monday, bouncing back from the losses incurred during Friday’s flash crash, which analysts attributed to US President Donald Trump’s misunderstanding of new Chinese export regulations.
Bitfarms (BITF) and Cipher Mining (CIFR) spearheaded the recovery, each enjoying double-digit increases. Hut 8 Mining (HUT), IREN (IREN), and MARA Holdings (MARA) also saw gains of over 4%, while Core Scientific (CORZ) and Riot Blockchain (RIOT) experienced a broad rise at the opening of trading.
The rebound followed a significant sell-off on Friday after Trump announced his plans to impose 100% tariffs on Chinese imports, raising fears of an escalating trade conflict. However, it was later clarified that the president’s comments were based on a misunderstanding of China’s new export policies, which he subsequently retracted over the weekend.
In a follow-up post on Truth Social, Trump stated: “Don’t worry about China, it will all be fine!” and added, “Highly respected President Xi just had a bad moment.”
US Treasury Secretary Scott Bessent further clarified that the proposed 100% tariffs on China “don’t have to happen.”
“This confirms our perspective that President Trump misinterpreted export controls announced on October 10th,” market analyst The Kobeissi Letter commented, referring to China’s expansion of export restrictions on rare earth minerals for defense and semiconductor industries.
Related: $19B crypto market crash: Was it leverage, China tariffs or both?
Crypto market volatility reaches unprecedented levels
While the sell-off in crypto-related stocks on Friday was severe, the turbulence in digital assets was even more pronounced.
In monetary terms, Friday’s flash crash represented the largest liquidation event in crypto history—exceeding even the FTX collapse—with approximately $19 billion in leveraged positions wiped out. Bitcoin (BTC) remained comparatively resilient, unlike altcoins, which suffered greater losses from peak to trough.
The intensity of the sell-off prompted Crypto.com CEO Kris Marszalek to call for regulatory investigations into exchanges’ management of the situation. Marszalek raised concerns about whether certain platforms slowed down, mispriced assets, or lacked adequate compliance controls during the crash.
About half of all liquidations originated from Hyperliquid, a decentralized perpetual futures exchange, where roughly $10.3 billion in positions were liquidated. Bybit and Binance also reported notable liquidations.
Binance came under further scrutiny amid reports that numerous token prices dropped to zero temporarily. The exchange later attributed this anomaly to a user interface display error affecting certain trading pairs. Additionally, Binance was linked to an exploit that caused Ethena’s synthetic dollar, USDe, to lose its dollar peg during the same timeframe.
Guy Young, founder of Ethena Labs, clarified that the depeg was unrelated to the USDe minting or redemption process and was instead an isolated issue on Binance:
“The severe price discrepancy was confined to a single venue, which referenced the oracle index on its own orderbook, rather than the most liquid pool of liquidity, and was facing deposit and withdrawal issues during the event that prevented market makers from closing the loop.”
Magazine: ‘Debasement trade’ will pump Bitcoin, Ethereum DATs will win: Hodler’s Digest, Oct. 5 – 11
