Bitcoin and ether declined on Tuesday amid escalating U.S.-China trade tensions, erasing Monday’s gains and extending a week of sharp losses for the digital asset market.
Bitcoin sank to $110,023.78 before stabilizing near $113,129, down 2.3%, while ether dropped 3.7% to $4,128.47. Analysts said the downturn followed both countries’ decision to impose new port fees on shipping companies, intensifying the trade conflict that has already rattled global markets.
The renewed strain on crypto markets comes just days after a historic $19 billion liquidation wiped out leveraged positions across exchanges. Automated trading systems again forced position closures, deepening Tuesday’s losses, especially among altcoins, some of which fell up to 80%.
“Crypto thrives in optimism and liquidity,” said Juan Perez of Monex USA, “but when macroeconomic fundamentals weaken, digital assets lose their safety net.” Analysts added that cryptocurrencies remain highly sensitive to geopolitical risks, especially when tied to broader tech-sector sentiment.
The latest sell-off underscores how intertwined crypto valuations have become with global financial and political dynamics. Following Trump’s tariff escalation and China’s rare earth export restrictions, investors appear to be moving capital into less volatile assets, leaving crypto markets vulnerable to further correction.
