Sharp Decline in Cryptocurrencies: Bitcoin and Ether Affected

Sharp Decline in Bitcoin and Ether

Bitcoin and Ether experienced significant value loss on Tuesday due to the rising tensions between the U.S. and China. Recently, U.S. President Donald Trump made statements that gave hope for a trade agreement, abruptly ending the rally in the cryptocurrency market.

New Front in the Trade War: Maritime Shipping

As of Tuesday, the U.S. and China have added new port fees for shipping companies, introducing a new dimension to the trade war. This situation has intensified discussions between the world’s two largest economies.

Decline Rates of Bitcoin and Ether

Bitcoin fell to $110,023.78, ending the day with a 2.3% decrease at $113,129. The cryptocurrency had previously reached a record high of $126,000 on October 6.

Ether also dropped to $3,900.80, trading with a 3.7% loss from $4,128.47. Last week, it had lost 12% of its value from its intraday peak.

Analyst Opinions

Cryptocurrency analysts pointed out that all alternative cryptocurrencies (altcoins) other than Bitcoin took the hardest hit from this decline, noting that losses in some exchanges have reached up to 80%. Juan Perez, trading director at Monex USA, stated, “As long as the fragility of U.S. and China relations continues and the stock markets remain dependent on technology stocks, the crypto market will struggle. Because cryptocurrencies tend to perform better during times when other assets are doing well.”