- Bitcoin tumbled under $112,000 after China’s latest sanctions reignited trade tensions with the U.S., triggering a $630 million liquidation wave.
- Major cryptos and global equities also fell as investors rushed to safer assets.
Bitcoin Leads Market Decline as China Hits Back
Bitcoin plunged 3% to $111,869 on Tuesday, as renewed trade friction between China and the United States rattled investor confidence. China’s sanctions against U.S. entities tied to South Korean shipbuilder Hanwha Ocean reignited fears of an escalating trade conflict, according to Bloomberg. The move erased optimism from recent signs of restraint between the two nations.
The ripple effect was immediate across global markets. Japan’s Nikkei dropped more than 3%, marking its worst performance in nearly two months. Futures tied to the S&P 500 and Nasdaq 100 fell 0.7% and 1%, respectively, while investors turned to safe havens such as the yen and U.S. Treasuries.
Crypto Markets See $630 Million in Liquidations
As global sentiment soured, crypto traders faced another wave of liquidations. Data from CoinGlass showed total liquidations hitting $630 million in 24 hours, with long positions accounting for nearly two-thirds of the losses.
Ethereum fell 4% to around $4,000, while Dogecoin, Solana, and XRP all dropped between 5% and 6%. BNB suffered a steep 10% decline after a period of strong performance the previous week.
This latest downturn follows a brief recovery from last week’s sharp correction triggered by former U.S. President Donald Trump’s proposed 100% tariffs on Chinese imports. That announcement led to one of the largest liquidation events in crypto history, wiping out nearly $20 billion in derivative positions.
A Tight Link Between Crypto and Global Risk
The events highlight how strongly crypto remains intertwined with macroeconomic developments. Despite hopes that digital assets would decouple from traditional markets, their price action continues to mirror broader risk trends.
Investors seeking refuge amid rising global tensions are moving back into safer assets such as gold, silver, and bonds. Bitcoin’s drop below $112,000 underscores the market’s fragility — and the ongoing influence of geopolitical uncertainty on digital currencies.
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