The cryptocurrency market has suffered significant losses, shedding approximately $150 billion amid a new wave of declines triggered by escalating tensions between Washington and Beijing. According to Bloomberg, bitcoin, the largest digital asset, dropped by 3.75%, reaching around $111,500 on Tuesday morning in London, while ether fell by 7.5%, dropping below $4,000.
Smaller, more volatile tokens experienced even greater declines, leading to a reduction in the total market value of all cryptocurrencies by over $150 billion within 24 hours, according to CoinGecko data.
This decline occurred after China imposed restrictions on the American firm Hanwha Ocean Co., one of South Korea's largest shipbuilders, in retaliation for US actions against the Chinese shipbuilding sector.
Earlier, around $19 billion in leveraged cryptocurrency positions were liquidated due to a severe sell-off that began on October 10, when US President Donald Trump threatened China with harsher tariffs in response to new export restrictions.
Digital asset markets briefly recovered to offset losses on Monday, but most major tokens began to fall again.
The weekend sell-off marked a sharp reset for cryptocurrency. Investors withdrew $756 million from US Bitcoin and Ether exchange-traded funds on Monday, highlighting anxiety among traders.
Remember, on October 11, cryptocurrency traders faced record liquidations just days after Bitcoin reached a new all-time high — volatility was largely driven by a new round of tariff threats from President Donald Trump.