Bitcoin experienced a significant drop on Tuesday morning, dipping below $112,000 as China’s countermeasures in trade disputes triggered renewed caution in international markets.
According to Bloomberg’s report earlier that day, China imposed sanctions on U.S. divisions of the South Korean shipbuilding company Hanwha Ocean. This action rekindled concerns about escalating tensions with Washington, despite recent signs from both nations indicating a willingness to de-escalate.
Asian stock markets plummeted, followed by declines in U.S. and European equity futures. Cryptocurrency investors were compelled to reduce their risk exposure after a brief recovery over the weekend.
The S&P 500 futures fell by 0.7%, Nasdaq 100 futures decreased by 1%, and Japan’s Nikkei suffered a loss exceeding 3%, marking its most challenging session in nearly two months.
The yen regained strength against the dollar after initial losses. Gold and silver saw their previous gains wiped out amid heavy afternoon selling, while yields on 10-year Treasury bonds dropped close to 4.03% as investors sought safer assets.
The cryptocurrency market mirrored this risk-averse behavior once more. Bitcoin declined by 3% to $111,869, Ethereum fell by approximately 4% reaching around $4,000, and BNB plunged over 10% following strong performance last week. Meanwhile XRP, Solana, & Dogecoin each decreased between 5% & 6% in the past day.
Total liquidations amounted to $630 million, with long positions accounting for two-thirds of these losses according to CoinGlass data.</
</tThe correction is part of an ongoing volatile period initiated when former U.S President Donald Trump threatened imposing tariffs at full capacity (100%) upon Chinese imports last week—a shockwave that led crypto into its largest liquidation event ever recorded thus far.</</
<In just one day,$19 billion worth trader capital vanished across derivative markets based upon Hyperliquid statistics before experiencing short-lived rebound during subsequent weekend time frame.</
<This latest downturn underscores how closely intertwined cryptocurrencies remain with global macroeconomic risks—with Sunday's earlier bounce almost entirely reversed now.