A sudden downturn hit crypto markets late Monday, wiping out early gains as a temporary trade truce between the U.S. and China shifted the tone of global risk appetite. The market shakeout resulted in over $500 million in liquidations as traders rushed to exit overleveraged positions.

Bitcoin (BTC), which had been riding high after reaching a weekend peak of over $104,000, fell back below $102,000. According to Coinglass, $530 million in long positions were liquidated, with $200 million linked to bitcoin and another $170 million tied to ether (ETH) products.

The sell-off extended across the board. Dogecoin (DOGE) and Cardano (ADA) dropped 7%, while Solana (SOL), XRP, and BNB declined between 5% and 6%, erasing a portion of the explosive gains from last week’s rally.

The previous week had seen a sharp upward breakout, led by altcoins and fueled by short squeezes that forced bearish traders to cover. That wave resulted in over $1 billion in short liquidations, marking one of the most aggressive upside moves since the 2021 bull market.

But the momentum faltered as news broke of a 90-day suspension of tariffs between the U.S. and China — a development that calmed traditional markets but undercut the speculative fervor in crypto.

“Markets are recalibrating,” said Jeff Mei, COO at crypto exchange BTSE. “With macro factors back in the driver’s seat, all eyes are now on the June Fed meeting.”

While equities responded positively to the trade developments, crypto appeared to react with a sigh of relief — a signal that the high-risk trade was being pared back as safer bets gained appeal.

Coinglass also reported that futures open interest declined by over $1.2 billion, suggesting traders are stepping back from leverage in the wake of the volatility.

Mei added: “If the Fed leans dovish, that could reinvigorate crypto markets. But for now, the short-term froth has been flushed.”