What happened?
Crypto markets bounced back after U.S.-China tensions eased and investors regained confidence, producing 24-hour gains across major sectors between about 6% and 20%. Layer2 tokens led the move with a 19.4% jump, while Mantle surged 38% and projects like Celestia and Zora climbed over 15% and 25% respectively; Bitcoin rose about 4.85% above $115,000 and Ethereum jumped roughly 11.6% past $4,100. The rebound followed a sharp sell-off sparked by Trump’s 100% tariff threat on China, which caused massive liquidations and a dramatic drop in Ethereum’s funding rates.
Who does this affect?
Active traders and leveraged positions felt the biggest impact, since the earlier tariff scare triggered widespread liquidations and funding-rate swings across derivatives markets. Holders of Layer2, AI, CeFi, and DeFi tokens saw big portfolio moves as those sectors led the recovery, and institutional and retail investors watching macro headlines are now adjusting risk exposure. Crypto platforms, market makers, and liquidity providers are also affected because volatility and funding-rate changes change how they hedge and price risk.
Why does this matter?
The rebound shows how quickly macro political news can flip market sentiment and move large amounts of capital into or out of crypto, raising the risk of more sharp swings ahead. A renewed appetite for altcoins and Layer2 projects could attract fresh investment and push prices higher, but lingering tariff uncertainty means volatility and correlation with geopolitics remain elevated. For traders and investors this means both opportunity and risk: potential gains from sector rotations, but also the need for careful risk management as funding rates and leverage can reverse rapidly.