Crypto Markets Plummet Amidst U.S.-China Trade Tensions

Bitcoin and ether saw significant declines as U.S.-China tensions increased, reversing previous gains following President Trump's trade comments. The trade war has impacted major cryptocurrencies and led to historical liquidations, with altcoins experiencing drastic drops as investors closed positions under market pressure.

Bitcoin and ether plummeted on Tuesday amid escalating U.S.-China tensions, erasing gains driven by President Trump's recent trade remarks. The escalating situation saw the U.S. and China implementing extra port fees, impacting global shipping and cryptocurrencies alike.

Bitcoin hit a low of $110,023.78, a stark contrast from its October 6 record high above $126,000, and was last down 2.3% at $113,129. Similarly, ether suffered a drop to $3,900.80, falling 3.7% to $4,128.47 in later trading. Altcoins mirrored these declines, with many experiencing severe losses of up to 80% on some exchanges.

The downturn was exacerbated by automatic position closures for leveraged investors. As Juan Perez from Monex USA noted, the crypto sector remains vulnerable in uncertain economic conditions, struggling to establish value foundations amid trade uncertainties, especially following extensive liquidations after Trump threatened hefty tariffs.

(With inputs from agencies.)