Bitcoin Surges Above $114,000 as Crypto Market Recovers from Collapse

By Hannah Perez

The cryptocurrency market is showing signs of recovery after historic liquidations of more than $19 billion on Friday. Bitcoin returns to USD $114,000 and settlements in 24 hours moderate.

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Bitcoin surges above $114,000 on Monday after wild turbulence last week.
Liquidations emerged over $19 billion in a historic event on Friday.
In the midst of the collapse, the crypto market erased USD $500 billion in capitalization.
Trump’s threat of a 100% tariff on China unleashed chaos.
Although volatility remains, crypto shows signs of recovery this Monday.

🚨 Bitcoin exceeds USD $114,000 after collapsing on Friday.

Historical settlements exceeded USD $19 billion in a single day.

Crypto capitalization plummeted by $500 billion.

The threat of 100% tariffs on Chinese products generated chaos in the… pic.twitter.com/B8JjNXeuj8

— Diario฿itcoin (@DiarioBitcoin) October 13, 2025

The cryptocurrency market shows signs of recovery this Monday, with Bitcoin trading above $114,500 at midday ET, following extreme turbulence marked by historic sell-offs on Friday.

The cryptocurrency derivatives market suffered massive liquidations of approximately $16.8 billion in long positions and $2.5 billion in short positions, totaling $19.3 billion in losses in a single day. The event, dubbed the largest dollar sell-off in crypto history, surpassed previous records and left investors catching their breath.

The collapse caused Bitcoin (BTC) will subtract about $17,000 in a matter of hours, falling below USD $105,000 after reaching a new all-time high of more than $126,000 at the beginning of the week. The total cryptocurrency market capitalization decreased by 9% in 24 hours, falling below USD $3.8 trillion.

BTC price data in the last 7 days on October 13, 2025. Source: CoinGecko

Trump tariffs spark chaos

The chaos was triggered by President Donald Trump’s threat to impose a 100% tariff on goods imported from China, reigniting fears of a full-scale trade war. This statement sparked a massive sell-off in risk assets, including cryptocurrencies, which have been moving in tune with macroeconomic trends.

During stirring, the centralized platform Binance faced problems, with users reporting failures in stop loss, withdrawals, balances and other operational aspects. Even the stablecoin USDe of Ethena It lost its peg on that exchange, falling to 65 cents. Binance apologized for the inconvenience and announced $283 million in compensation for those affected on Sunday.

The founder of Hyperliquid questioned the transparency of centralized exchanges and estimated that the actual size of liquidations could be larger than reported, due to incomplete data on platforms such as Binance. In fact, only in Hyperliquidmore than 6,300 wallets were liquidated due to an automatic mechanism that closes winning positions to cover systemic losses when insurance funds are depleted, turning the correction into a structural event.

Tension has partially eased since the turmoil following clarifications from China’s Ministry of Commerce on rare earth export controls – without being a total veto – and a message from Trump on social media stating that “The United States wants to help China, not hurt it”, which fueled a rebound in the markets.

Bitcoin surges, altcoins rally

Cryptocurrency traders are now catching their breath after Friday’s wild session. In the early hours of Monday, Bitcoin It momentarily emerged more than 3% above $115,700 before a slight correction. Altcoins like Cardano (ADA) and Chainlink (LINK) initially led the rebound, with gains close to 10% in 24 hours, although it has moderated its gains.

According to data from CoinGeckomost of the top cryptocurrencies by market cap post gains in the last 24 hours. Ethereum (ETH) is up 1.8% to $4,145, XRP is up 3.8% to $2.59, Solarium (SOL) is changing hands 2% higher at $199, while ADA and LINK have adjusted their advances to less than 4%, trading at $0.71 and $19.6, respectively. Tokens like BNB and tron (TRX) contrast with losses of around 0.5%.

The total capitalization of the cryptocurrency market has returned to USD $4 trillion with an increase of 1%, while the total flow of settlements has moderated below USD $500 million in the last 24 hours.

According to Coinglassthere have been liquidations of $250 million in long positions (bullish bets) and USD $230.4 million in short positions (bearish bets) since this time yesterday, affecting some 198,222 individual traders. ETH has faced the most liquidations in the period, with USD $144 million, followed by BTC with USD $84.6 million.

Market reset prompts new rally

Justin d’Anethan, head of partnerships at Arctic Digitaldescribed the event as “a massive emotional reset”adding that volatility caused losses in both directions. “Traders were punished in the decline and in the rapid rebound. But The long-term structure remains intact.he said, as quoted by the media CoinDesk.

The crash, which wiped $500 billion off the total market capitalization, serves as a warning sign about the risks of excessive leverage, which amplified both gains and losses. This “reset” has cleared speculative positions, strengthening the bases for sustained growth, as long as geopolitical tensions do not escalate, as highlighted The Block.

“If the US-China dispute does not escalate to an all-out trade war, the market will likely rally and push back toward all-time highs.“Jeff Mei, COO of BTSEdepending on coverage.

Beyond the trade tension, traders’ eyes are set—as they were before Trump’s tariff announcement—on the U.S. central bank’s next monetary policy decision. If the Federal Reserve announces a rate cut this month, cryptocurrencies such as Bitcoin They could resume the bullish phase, although caution remains regarding possible new corrections.

At the time of writing, the price of BTC is USD $114,65084.5% more in the last year and a decrease of almost 9% from its historical maximum of USD $126,080 established on October 6, according to CoinGecko.

Article written with the help of AI, edited by DailyBitcoin

Image from Unsplash

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