Bitcoin fell below $112,000 during trading Tuesday afternoon Hong Kong time as China’s retaliatory trade measures sent a new wave of risk-off sentiment across global markets.
Bloomberg reported earlier on Tuesday that China sanctioned U.S. units of South Korean shipbuilder Hanwha Ocean in a move that revived fears that the trade conflict with Washington could escalate, just days after both sides signaled restraint.
Stocks in Asia plunged, stock futures in the US and Europe followed, and cryptocurrency traders were again forced to reduce risk after a brief weekend rally.
Contracts linked to the S&P 500 fell 0.7%, Nasdaq 100 futures lost 1% and Japan’s Nikkei fell more than 3%, marking its worst session in almost two months.
The yen reversed losses and strengthened against the dollar. Gold and silver erased earlier gains in heavy afternoon selling, while 10-year Treasury yields fell to around 4.03% as investors fled to safety.
Cryptocurrencies tracked risk again. Bitcoin fell 3% to $111,869, Ethereum fell 4% to around $4,000, and BNB fell more than 10% after outperforming last week. XRP, Solana and Dogecoin fell by 5% to 6% in the last 24 hours.
Total liquidations reached $630 million, with long positions accounting for two-thirds of the liquidation, according to CoinGlass.
The correction extends a volatile streak that began with US President Donald Trump’s threat of 100% tariffs on Chinese imports last week, a shock that triggered the largest sell-off event in cryptocurrency history.
According to data from Hyperliquid, almost $20 billion worth of positions were wiped out in derivatives markets in 24 hours, before a brief rally over the weekend.
The final slide goes on to show how closely cryptocurrencies remain tied to global macroeconomic risk, with an earlier bounce on Sunday almost completely reversed.
