Shares of Bitcoin mining companies surged on Monday, marking a recovery from losses during Friday’s sudden market crash, which analysts attributed to President Donald Trump’s apparent misinterpretation of newly implemented Chinese export controls.

Companies like Bitfarms (BITF) and Cipher Mining (CIFR) led this rebound with gains exceeding 10%. Other firms, including Hut 8 Mining (HUT), IREN, and MARA Holdings, also experienced increases of over 4%.

The recovery came after a steep decline linked to Trump’s announcement of 100% tariffs on Chinese imports, triggering fears of a potential trade war. It was later clarified that Trump’s remarks were based on a misunderstanding of the Chinese regulations, leading him to retract his statements over the weekend.

On Truth Social, Trump reassured, “Don’t worry about China, it will all be fine!” and referred to President Xi as having had a temporary lapse.

Further clarification from Treasury Secretary Scott Bessent indicated that the proposed tariffs were not a certainty. Market analyst The Kobeissi Letter commented, “This confirms our view that President Trump misinterpreted export controls announced on October 10th,” referring to China’s expansion of export restrictions on rare earth elements.

Crypto Market Volatility Reaches New Highs

Despite the sell-off in crypto stocks, the volatility in digital currencies was even more pronounced. Approximately $19 billion in leveraged positions were liquidated, marking a historic liquidation event, surpassing even the FTX collapse. Bitcoin demonstrated more resilience than many altcoins, which suffered steeper declines.

Kris Marszalek, CEO of Crypto.com, called for regulatory scrutiny into how exchanges managed these situations, suggesting that technical failures may have exacerbated the crash.

Moreover, Binance faced scrutiny due to instances of certain tokens dipping to zero, attributed to a user interface error in specific trading pairs, complicating the overall market dynamics.