The US stock markets, Bitcoin, and altcoins are fighting to recover from Friday’s brutal sell-off triggered by US President Donald Trump’s announcement of a 100% tariff on China. The shockwave wiped out roughly $20 billion in liquidations within 24 hours, according to CoinGlass data, marking one of the biggest shakeouts in recent months. Overleveraged traders with poor risk management got caught in the storm, flushing out excessive leverage and leaving room for more disciplined investors to step in. The bounce from the lows has started, but traders should not expect an immediate vertical rally. Economist Timothy Peterson told Cointelegraph that Bitcoin may enter a three- to four-week “cooling off period” before the uptrend resumes potentially at a slower, more sustainable pace.
In a major regulatory move, California Governor Gavin Newsom signed a set of bills aimed at establishing safeguards for social media platforms and AI-powered companion chatbots. The legislation, which takes effect in January 2026, will require platforms to include age verification tools, mental health safeguards, and clear AI disclosures when interacting with minors. The move follows growing concern that AI chatbots could negatively influence young users. While the new laws primarily target tech firms, they could also extend to decentralized social and gaming platforms, reshaping compliance standards for blockchain-based applications.
Meanwhile, Hyperliquid CEO Jeff Yan raised eyebrows in the trading community by suggesting that centralized exchanges, especially Binance, might be underreporting liquidation data. His comments followed Friday’s flash crash, where Bitcoin dropped to $102,000, Ether to $3,500, and Solana slid below $140. CoinGlass reported $16.7 billion in long liquidations and $2.45 billion in shorts, the largest liquidation event in crypto history. Yan explained that Binance’s data stream may only record one liquidation per second, potentially missing hundreds that occur simultaneously during high-volatility events. This suggests the true scale of Friday’s bloodbath could have been far greater than reported, reinforcing how fragile market liquidity can become during macro shocks.
Adding to the uncertainty, the US government shutdown has entered its third week, stalling progress on multiple crypto ETF applications awaiting approval. The SEC, operating with limited staff, has paused action on at least 16 pending ETF filings, including both spot and futures-based crypto products. More than 20 new ETF applications were submitted in early October alone, but deadlines have come and gone without movement. For now, the entire ETF wave is stuck in limbo until Congress passes a new funding bill, allowing the SEC to resume full operations. Traders are keeping a close eye on the developments, as ETF approvals are seen as a major catalyst for broader market inflows once the government reopens.
Trader’s Outlook: The crypto market is in recovery mode after a massive washout, and while momentum is slowly returning, traders should remain cautious. Bitcoin’s key support sits near $102K, with $116K–$121K acting as short-term resistance. Ether must reclaim $3,800 to signal renewed strength, while altcoins may stay choppy until volatility cools off. With the US government shutdown delaying ETF approvals, sentiment could remain mixed expect range-bound trading with opportunities for patient dip buyers rather than momentum chasers.
Bitcoin sellers failed to complete the double-top setup as BTC held firmly above the key $107,000 support. The price briefly dipped to $102,000 on Friday but quickly bounced back, showing that buyers are stepping in at lower levels. This rebound suggests that bulls are not ready to surrender control yet. The BTC/USDT pair now faces resistance near the 61.8% Fibonacci retracement level at $116,955, where some selling could appear. If buyers push through this level, BTC could rally toward $121,020 and then retest the all-time high near $126,199. On the flip side, if the price turns down from current levels, the first support sits around $109,500, followed by the critical $107,000 zone, which buyers are likely to defend aggressively. A decisive break below that support could open the doors for a deeper fall below $100,000.
Ether also staged a strong recovery after briefly slipping below its descending channel on Friday and Saturday. The quick rebound back into the pattern on Sunday showed that bulls are still buying the dips. The ETH/USDT pair now needs to clear the moving averages to confirm strength. If it turns down sharply from this zone, the bears will likely attempt another breakdown below the channel, which could mark a short-term top. But if ETH breaks and holds above the moving averages, it signals stability, increasing the chances of sideways consolidation within the channel. A strong close above the resistance line would signal the resumption of the broader uptrend and could put higher levels back on the radar.
Trader’s Outlook: BTC is trying to shake off the recent weakness, with $116K acting as the near-term barrier and $107K as the key support zone. A breakout above $117K could set up another leg higher toward $121K–$126K. For ETH, the battle at the moving averages will decide direction — holding above them could keep the uptrend alive, while slipping back below the channel may invite another round of selling.
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