Bitcoin (BTC) traders are catching their breath after one of the wildest weekends in the asset’s history.The flash crash that happened late Friday following Trump’s 100% tariff announcement on Chinese imports wiped nearly $19 billion in crypto positions — the largest single-day liquidation on record. But some 48 hours later, the market looks steadier, with a bounce taking shape as both Washington and Beijing moved to cool tensions.Alternative cryptocurrencies such as cardano (ADA) and dogecoin (DOGE) are leading the bounce. Both SDA aand DOGE have gained nearly 10% in 24 hours as discounted valuations enticed bargain hunters. Bitcoin (BTC) climbed 2.7% over the past 24 hours to about $114,665, while ether (ETH) surged 8.3% to $4,135. BNB gained 13.9%, a reminder that liquidity is flowing back toward ecosystem tokens. XRP rose 7.4%, Solana (SOL) added 7.2%.The market’s message is clear: the broader bullish trend hasn’t broken, but the volatility has reset sentiment. “What we just saw was a massive emotional reset,” said Justin d’Anethan, head of partnerships at Arctic Digital.“Volatility cuts both ways — traders were punished on the way down and on the snap back. But the longer-term structure is intact. ETF inflows remain strong, exchange balances near cycle lows, and the broader narrative is arguably stronger after the washout,” he added.That washout was no small thing. Over 6,300 wallets were liquidated on decentralized exchange Hyperliquid alone, with some traders losing millions in a cascade triggered by Auto-Deleveraging — a circuit-breaker that closes winning positions to cover systemic losses when insurance funds run dry.It stopped bad debt, but it also magnified the fall, turning the correction into a structural event.U.S.-China tensions easeThe rebound began over the weekend when China’s Ministry of Commerce clarified that rare-earth export controls wouldn’t be a blanket ban, while Trump himself posted that “the U.S.A wants to help China, not hurt it.”Markets took that as a sign the trade war rhetoric was cooling, and risk assets bounced accordingly.At this stage, crypto is moving in step with macro again. “If the U.S.–China spat doesn’t escalate into a full-on trade war, the market is likely to recover and push back toward all-time highs,” said Jeff Mei, COO at BTSE, in a note to CoinDesk.The path ahead will hinge on rates and risk appetite. If central banks lean into easing, traders expect ETH and yield-generating tokens to outperform. Funding rates, options skew, and whale flows will show where fresh capital rotates next.The setup is volatile, but the conviction remains. I’d say the shakeout burned leverage, not belief.