Crypto Markets Rally Past $1 Billion in Liquidations as Trump Retreats on Tariffs and BitGo Files $2.1B IPO
Cryptocurrency markets rallied strongly into green territory as easing macroeconomic tension sparked a massive wave of short liquidations across digital asset exchanges. The market surge followed signals from U.S. President Donald Trump that his administration is stepping back from proposed tariff increases on the European Union, removing a key macroeconomic drag that had previously weighed on global risk assets.
The sudden market reversal triggered more than $1 billion in total liquidations within 24 hours, primarily forcing leveraged short positions to close out as token prices rebounded sharply. Bitcoin gained 2% to trade around $89,900, while Ethereum climbed 2% to $2,995. Solana also rose 2% to reach $130, and XRP advanced 3% to $1.94. Mid-cap digital assets recorded even stronger gains, led by CC with a 15% jump, SKY rising 11%, and SAND adding 10%.
Coinciding with the market recovery, institutional crypto custodian BitGo formally launched its initial public offering, pricing its shares at $18 each. The offering sets BitGo’s market valuation at approximately $2.1 billion, reflecting renewed Wall Street interest in digital asset infrastructure providers. Custody specialists play a critical role in institutional crypto adoption, safeguarding assets for spot exchange-traded funds and major corporate treasuries under regulated risk frameworks.
Regulatory momentum also picked up in Washington. The U.S. Senate Agriculture Committee confirmed that its version of the Clarity Act will advance to a committee markup next week, despite lacking broader bipartisan backing. Donald Trump reiterated his goal of signing comprehensive crypto market structure legislation into law in the near future, even as lawmakers continue to debate jurisdictional boundaries between commodities and securities oversight.
Mainstream integration expanded into traditional consumer finance and employment compensation. Mortgage lender Newrez initiated efforts to explore counting Bitcoin and Ethereum assets toward mortgage qualification requirements. To manage price volatility, the lender plans to apply discounted valuations to crypto holdings during debt-to-income and asset verification assessments. Meanwhile, restaurant chain Steak ‘n Shake announced a new workforce incentive program allowing hourly employees to earn a portion of their pay in Bitcoin.
Overseas, regulatory oversight matured across key international jurisdictions. Regulators in Hong Kong moved forward with licensing stablecoin issuers under a newly implemented governance framework requiring full reserve backing, strict operational compliance, and segregated client accounts. In Russia, judicial authorities established a significant legal precedent by formally ruling that cryptocurrencies qualify as property, establishing clear guidelines for asset recovery in civil and criminal litigations.
At the protocol level, Ethereum co-founder Vitalik Buterin unveiled a proposal to incorporate native Distributed Validator Technology directly into Ethereum’s staking setup. By splitting a validator’s operational key among multiple independent node operators, native Distributed Validator Technology aims to eliminate single points of failure, enhance network decentralization, and shield stakers from accidental slashing penalties. Separately, security vulnerabilities remained a concern as Saga’s EVM blockchain suspended operations after a $7 million cyber attack, during which hackers funneled compromised funds across cross-chain bridges onto the Ethereum network.
