Cryptocurrencies suffered a sharp decline on Tuesday as trade tensions between the United States and China added pressure to an already volatile market. The global crypto market shed over $150 billion in value over a 24-hour period, continuing the dramatic selloff that began over the weekend.

Bitcoin, the world’s largest digital asset, fell as much as 4% to roughly $111,200 in early London trading, while Ether tumbled nearly 8% to below $4,000. Smaller, more volatile tokens were hit even harder, amplifying losses across the cryptocurrency ecosystem. According to CoinGecko data, the total market capitalization of all digital assets declined significantly as investors scrambled to reduce exposure to risk.

The selloff was triggered by a combination of geopolitical and financial factors. China imposed sanctions on the U.S. units of Hanwha Ocean Co., one of South Korea’s largest shipbuilders, in retaliation against U.S. measures targeting the Chinese shipping sector. This escalation came on the heels of a previous warning from U.S. President Donald Trump threatening harsher tariffs on Chinese goods in response to new export controls. The geopolitical tensions contributed to heightened uncertainty in global financial markets, weighing on both crypto and traditional equities.

The market had briefly rebounded on Monday, partially recovering from an estimated $19 billion in liquidated leveraged crypto positions during the initial selloff starting October 10. However, losses resumed quickly, reflecting lingering nervousness among investors. In the U.S., Bitcoin and Ether exchange-traded funds saw $756 million withdrawn on Monday alone, signaling growing caution among traders.

Analysts have suggested that Bitcoin’s price could test the $104,000–$108,000 range if it breaks below the $110,000 mark. “The market now enters a consolidation phase, one defined by renewed caution, selective risk-taking, and a more measured rebuilding of confidence across both spot and derivatives markets,” said analytics firm Glassnode in a recent note. Timothy Misir, head of research at digital-assets analytics platform BRN, echoed these concerns, emphasizing the potential for further price testing in the near term.

Publicly traded companies that have invested heavily in digital assets have also felt the ripple effects. Japan’s Metaplanet Inc., which holds a substantial Bitcoin reserve, saw its market value drop below the value of its holdings for the first time, as its shares fell 12% to a five-month low in Tokyo.

The renewed volatility in crypto markets underscores the sector’s sensitivity to both geopolitical developments and broader investor sentiment. As U.S.-China relations continue to strain global trade, the crypto market is likely to experience heightened turbulence in the coming days, with investors navigating an increasingly uncertain environment.