Cryptocurrencies continued to lose ground after a historic round of liquidations that triggered a sharp selloff over the weekend.
Bitcoin, the largest digital asset by market value, slumped as much as 3.75% to about $111,500 on Tuesday morning in London, while Ether fell 7.5% to below $4,000, according to data compiled by Bloomberg. Smaller, more volatile tokens sank further still, dragging the combined market value of all cryptocurrencies down by more than $150 billion over a 24-hour period, according to CoinGecko data.
The slide came as China imposed curbs on the American units of Hanwha Ocean Co., one of South Korea’s biggest shipbuilders, hitting back against US measures against the Chinese shipping sector. Earlier, about $19 billion of leveraged crypto positions were liquidated in a brutal selloff that began October 10, after US President Donald Trump threatened China with harsher tariffs in response to new export controls.
Digital-asset markets briefly rebounded to pare losses on Monday, but most major tokens have now resumed their descent.
The weekend selloff represented a drastic reset for crypto. Investors pulled $756 million from US Bitcoin and Ether exchange-traded funds on Monday, underscoring a sense of nervousness among traders.
"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,” analytics firm Glassnode said in a note. - Bloomberg
