Bitcoin Mining Stocks Rebound After Trump’s Tariff Threat Shakes Markets

Bitcoin mining stocks surged on Monday, rebounding sharply after last week’s market turmoil triggered by U.S. President Donald Trump’s tariff threat against China. Analysts say confusion over Beijing’s export controls briefly rattled investors before a swift recovery led by top miners restored confidence.

• Bitfarms and Cipher Mining led Monday’s rally with double-digit gains.
• Trump’s 100% tariff threat on Chinese imports caused a Friday flash crash.
• The turmoil stemmed from a misunderstanding of China’s export rules.
• Crypto markets saw $19B in liquidations, the largest in history.
• Hyperliquid and Binance faced scrutiny over liquidation and oracle issues.
• Analysts expect volatility to ease as markets digest Trump’s remarks.

Shares of leading Bitcoin mining companies rebounded strongly on Monday following a chaotic end to the previous week. The sector had been hit hard after President Donald Trump announced plans to impose 100% tariffs on Chinese imports, sparking fears of an escalating trade war and sending both traditional and crypto markets tumbling.

Bitfarms (BITF) and Cipher Mining (CIFR) led the comeback, each posting double-digit gains. Other major miners like Hut 8 Mining (HUT), IREN (IREN), MARA Holdings (MARA), Core Scientific (CORZ), and Riot Blockchain (RIOT) also recorded gains of more than 4% as markets stabilized.

Friday’s steep sell-off was later attributed to a miscommunication about China’s new export controls. Trump initially interpreted the measures — which expanded restrictions on rare earth minerals vital for semiconductors — as an aggressive trade move, prompting his tariff response. However, U.S. Treasury Secretary Scott Bessent and analysts later clarified that Trump had misunderstood the announcement.

“This confirms our view that President Trump misinterpreted the export controls,” market research firm The Kobeissi Letter wrote, emphasizing that the tariffs “don’t have to happen.” Over the weekend, Trump walked back his remarks, assuring followers on Truth Social that “it will all be fine,” and even describing Chinese President Xi Jinping as having “just had a bad moment.”

Despite the rebound in equities, the crypto market experienced one of its most severe liquidations on record. More than $19 billion in leveraged positions were wiped out — surpassing even the collapse of FTX — as Bitcoin briefly dipped under $110,000. Analysts described the event as a flash crash driven by panic and algorithmic sell pressure.

Bitcoin (BTC) proved relatively stable compared to altcoins, which suffered deeper losses. The majority of liquidations occurred on Hyperliquid, a decentralized futures exchange, where $10.3 billion in positions were erased. Bybit and Binance also reported heavy losses.

Binance faced added scrutiny after users reported that several token pairs briefly showed zero prices. The exchange later explained that a user interface bug caused display errors and denied any systemic trading issues. During the same period, the synthetic dollar USDe, issued by Ethena Labs, also lost its peg on Binance.

Ethena’s founder Guy Young clarified that the depeg was unrelated to the token’s minting or collateral and was instead “isolated to a single venue” using Binance’s own oracle data, rather than the “deepest liquidity pools.”

While volatility remains elevated, analysts say the quick rebound in Bitcoin mining stocks shows that institutional sentiment remains strong. “The confusion was short-lived,” one analyst noted. “Traders now realize that the tariff panic was based on a misunderstanding — not on fundamentals.”

Final Thought

After a dramatic sell-off and record liquidations, the rebound in Bitcoin mining stocks underscores market resilience amid geopolitical uncertainty. As clarity returns and Trump’s tariff threats fade, both traditional and crypto markets appear poised for stabilization — with miners once again leading the recovery charge.