Bitcoin Below 112K Dollars: Decline in the Crypto Market

Sharp Decline in Bitcoin and Crypto Market

Bitcoin dropped below $112,000 on Tuesday afternoon Hong Kong time as China reignited risk-averse sentiment in global markets with its trade sanctions against the United States (U.S.). According to a report by Bloomberg on Tuesday, China imposed sanctions on the U.S. unit of South Korean shipbuilder Hanwha Ocean. This development has raised fears of escalating trade conflict with Washington.

Asian stock markets experienced significant declines. Japan's Nikkei index recorded its worst session in the last two months. U.S. and European stock futures also showed decreases. Bitcoin fell to $111,869, with a loss of 3%, while Ethereum dropped by 4% to around $4,000. BNB lost more than 10% following its performance over the past week. Other crypto assets like XRP, Solana, and Dogecoin experienced declines ranging from 5% to 6% in the last 24 hours.

Total liquidations in the crypto markets, which indicate sensitivity to global macroeconomic risks, reached $630 million. Liquidations included two-thirds of long positions. This correction extends the volatile period that began last week after U.S. President Donald Trump's threat of a 100% tariff on Chinese imports. The event triggered the largest liquidation event in crypto assets. According to Hyperliquid data, around $20 billion worth of positions were wiped out in the derivatives market within 24 hours, followed by a brief recovery. The recent decline once again demonstrates how closely crypto is tied to global macro risks.