Bitcoin, Ethereum tumble as trade war fears trigger massive sell-off
What's the story
The cryptocurrency market is witnessing a major sell-off, with Bitcoin and Ethereum both taking a hit. The global crypto market cap has fallen to $3.7 trillion from the record high of $4 trillion seen last week, according to CoinMarketCap data. The broader crypto market has also witnessed a 0.89% decline in the last 24 hours, extending a seven-day slump of 11.5%.
Market response
Geopolitical tensions impact cryptocurrency market
The recent downturn in the cryptocurrency market can be attributed to geopolitical tensions, particularly US President Donald Trump's decision to impose an additional 100% tariff on China. This has led to fears of a potential trade war if China retaliates. The announcement triggered cryptocurrencies' largest liquidation worth $19 billion on October 11, as investors turned toward safe-haven assets like gold and silver amid the uncertainty.
Trader behavior
Traders exit risky positions amid uncertainty
In light of the market volatility, traders have been exiting risky positions, resulting in an 18% drop in open interest. This indicates a low appetite for investment in these uncertain times. The current downturn is described as a "combination of macro shockwaves and extreme leverage," marking crypto's worst day since Q1 2025.
Crypto performance
Prices of Bitcoin, Ethereum today
Bitcoin is currently priced at $111,122.51, down 1% in the last 24 hours and 10.38% over the past week. Its market cap has also fallen by nearly 0.90% to $2.22 trillion, with trading volumes declining by a whopping 45.84% in the last day to $94.71 billion. Meanwhile, Ethereum is priced at $3,798 after falling by 0.39% from yesterday's value, while its market cap stands at $458.43 billion with trading volume halving to $54.44 billion.