$180 billion flows into crypto as U.S.–China tariff ‘misunderstanding’ clears up

Global cryptocurrency markets surged on Sunday, adding $180 billion in value after the geopolitical scare between the United States and China turned out to be a misunderstanding over the next tariff policy.

As of press time, the total crypto market capitalization stood at $3.87 trillion, up from $3.69 trillion just 24 hours earlier.

Cryptocurrencies leading this rebound included Bitcoin (BTC), which rose 2% to trade above $114,000, while Ethereum (ETH) gained nearly 8%, reaching $4,139. Binance Coin (BNB) led major gainers with a 12.34% jump to $1,297, while Solana (SOL) surged 6.19% to $195. XRP also moved higher by 1.32%, changing hands at $2.52.

Tariff tensions easing

The rally came after Beijing issued a late-night clarification on its rare earth export controls, saying the new measures were not an outright ban and that export applications “meeting regulations” would continue to be approved.

This came in response to market chaos triggered when President Donald Trump posted about China’s supposed export ban more than a day after the initial report, a delay that helped fuel panic in global markets.

Trump had threatened to impose 100% tariffs on the Asian economic giant, further rattling investors. However, tensions eased on Sunday after Trump said the U.S. intends to help China.

Notably, the misunderstanding led to the largest crypto liquidation in history and wiped out an estimated $2.5 trillion in S&P 500 market capitalization on Friday.

Analysts now view the incident as a temporary overreaction, calling Trump’s 100% tariff threat a likely “bargaining chip” rather than a genuine policy shift.

Meanwhile, a section of analysts maintained that the correction would be short-lived, a view now seemingly validated by the swift market recovery.

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