The global crypto market dropped sharply on Tuesday after China retaliated against the United States, shaking investor confidence.
More than $150 billion in market value disappeared in just 24 hours — one of the biggest losses this year.
📉 Bitcoin and Ethereum Lead the Decline
Bitcoin (BTC), the world’s largest cryptocurrency, fell by over 4% to around $111,200 in London trading.
Ethereum (ETH) slid by almost 8%, dropping below $4,000.
Smaller and more volatile altcoins also tumbled, pulling the total crypto market capitalization down sharply, according to CoinGecko.
⚠️ China’s Retaliation Escalates U.S. Trade Tensions
The selloff came after China placed new restrictions on U.S. units of Hanwha Ocean Co., a major South Korean shipbuilder.
The move was a response to U.S. actions against China’s shipping sector.
Earlier, President Donald Trump had warned of stricter tariffs on Chinese exports, raising fears of a renewed trade war and fueling the market panic.
💥 $19 Billion in Leveraged Positions Wiped Out
Over the weekend, about $19 billion in leveraged crypto positions were liquidated.
This triggered a wave of forced selling and deepened the losses.
Although markets briefly recovered on Monday, the rebound faded quickly.
By Tuesday, most digital assets and global equities were once again in the red.
💸 Massive Outflows From Bitcoin and Ethereum ETFs
Investors withdrew more than $756 million from U.S.-listed Bitcoin and Ethereum ETFs on Monday.
This shows growing fear and uncertainty in the market.
If Bitcoin falls below $110,000, it could test the $104,000–$108,000 support zone, said Timothy Misir, Head of Research at BRN Analytics.
🧠 Analysts Expect a Period of Caution
Experts at Glassnode believe the crypto market is now entering a consolidation phase.
Traders are expected to stay cautious, limit risk exposure, and focus on gradually rebuilding confidence in both spot and derivatives markets.
📊 Crypto Stocks Also Fall
The selloff hit crypto-related companies as well.
In Japan, Metaplanet Inc. saw its stock drop 12%, hitting a five-month low.
For the first time, the firm’s enterprise value fell below the value of its Bitcoin holdings.
🔍 The Bottom Line
The sharp crypto crash shows how U.S.–China tensions continue to drive market uncertainty.
Investors are watching Bitcoin’s key support levels and the global economic outlook to gauge the next move.
Until tensions ease, volatility is likely to remain high.
