The global cryptocurrency market has suffered significant losses again, losing around $150 billion amid new geopolitical tensions between Washington and Beijing. According to Bloomberg, Bitcoin, the leading digital asset, fell by 3.75%, reaching about $111,500 on Tuesday morning in London, while Ether dropped by 7.5%, falling below $4,000.
Smaller, more volatile tokens experienced even greater declines, leading to a decrease in the total market value of all cryptocurrencies by over $150 billion within a day, according to CoinGecko.
This downturn occurred after China imposed new restrictions on American subsidiaries of Hanwha Ocean Co., one of South Korea's largest shipbuilders, in response to U.S. actions against the Chinese shipbuilding sector.
Previously, around $19 billion in leveraged cryptocurrency positions were liquidated due to a fierce sell-off that began on October 10, after U.S. President Donald Trump threatened China with tougher tariffs in response to new export restrictions.
Digital asset markets initially showed signs of recovery to offset losses on Monday, but most major tokens started to decline again.
The weekend sell-off marked a sharp reset for cryptocurrencies. Investors pulled $756 million from U.S. Bitcoin and Ether exchange-traded funds on Monday, highlighting traders' nervousness.
It's worth noting that on October 11, crypto market traders faced record liquidations just days after Bitcoin reached an all-time high — the volatility was largely triggered by a new round of tariff threats from U.S. President Donald Trump.