Bitcoin, ether slide as U.S.-China tensions reignite, wiping out earlier gains
Bitcoin and ether fell sharply on Tuesday as rising U.S.-China trade tensions erased the previous day’s rebound, underscoring the crypto market’s fragility following last week’s record liquidation event.
Bitcoin dropped as low as $110,023.78 before recovering slightly to $113,129, down 2.3%, while ether slid 3.7% to $4,128.47 after hitting an intraday low of $3,900.80. The world’s largest cryptocurrency has fallen more than 12% since reaching a record $126,000 on October 6.
The renewed decline came as both the U.S. and China imposed new port fees on ocean shipping companies, escalating their trade dispute and disrupting global supply chains. Analysts said the move transformed maritime trade into a new battleground in the ongoing economic conflict between the world’s two biggest economies.
Altcoins bore the brunt of the sell-off, with some tokens plunging as much as 80% on certain exchanges. Analysts said automated liquidations on leveraged platforms further amplified volatility as margin calls forced traders to unwind positions.
“As long as U.S.-China relations remain tense and equities are heavily concentrated in tech, crypto will struggle,” said Juan Perez, director of trading at Monex USA. “When fundamentals weaken, bitcoin and ether lose their footing because their value depends on broader investor confidence.”
The slump follows last Friday’s $19 billion crypto liquidation, the largest in market history, which was triggered by Trump’s 100% tariff threat on Chinese imports and Beijing’s retaliatory rare earth export restrictions.