Cryptocurrencies tumbled again on Tuesday as tensions between the United States and China escalated, triggering a fresh wave of risk aversion across global markets.
Bitcoin, the world’s largest digital asset, fell as much as 4.6% to around $110,000, extending last week’s steep losses, after Beijing raised the stakes in its economic standoff with Washington.
More than $129 billion was erased from the total cryptocurrency market in the past 24 hours, according to CoinGecko, after China imposed restrictions on the American subsidiaries of one of South Korea’s biggest shipbuilders. The move was seen as retaliation for US measures targeting China’s shipping sector.
The sell-off highlights a broader retreat from riskier assets as investors flock to traditional safe havens. Gold and silver both surged to record highs, while global stock markets extended losses on fears that the trade dispute could spill over into broader economic disruption.
Last week, roughly $400 billion (£300 billion) was wiped from the crypto market in less than a day after Donald Trump vowed to impose steep new tariffs on Chinese imports, reigniting fears of a prolonged trade war between the world’s two largest economies.
The renewed volatility has underscored how sensitive digital assets remain to macroeconomic shocks, despite Bitcoin’s growing mainstream adoption and the perception among some investors that it serves as a hedge against inflation.
