The global cryptocurrency market lost about 150 billion dollars during the day after another drop in assets, triggered by the escalation of relations between Washington and Beijing. This is reports Bloomberg.
Bitcoin, the biggest digital asset by market capitalization, fell 3.75% to around $111,500 in London on Tuesday morning, while Ether lost 7.5% to below $4,000. Smaller and more volatile tokens depreciated even more, causing the combined market value of all cryptocurrencies to drop by more than $150 billion in 24 hours, according to CoinGecko.
The reason was that China imposed restrictions against the American units of Hanwha Ocean Co., one of South Korea’s largest shipbuilders, in response to US measures against the Chinese shipbuilding sector.
Earlier, about $19 billion of leveraged cryptocurrency positions were liquidated after a massive sell-off that began on Oct. 10 when US President Donald Trump threatened China with tougher tariffs in response to new export restrictions. Although the digital asset market briefly recovered and recouped some of Monday’s losses, most of the key tokens began to fall again.
The weekend sell-off was a major test for cryptocurrencies. Investors pulled $756 million from U.S.-based Bitcoin and Ether exchange-traded funds on Monday alone, signaling growing nervousness among traders.
