US-China tariff war: Bitcoin sinks 11% in a week, $150 bn wiped from crypto market in latest rout

The crypto market continued to bleed after one of the largest rounds of liquidations, which were triggered after US President Donald Trump threatened the People’s Republic of China with a 100% tariff “over and above” the existing tariffs, and it accelerated as China imposed the latest rounds of retaliatory restrictions on Hanwha Ocean Co., the US unit of South Korean shipbuilding major.

Bitcoin, the largest digital asset by market value, is (6.24 pm India time) down 3% in the past 24 hours to about $1,11,500.60, with its 7-day price at a record 11.12% low. Ethereum has also fallen about 3.68% today to drop below $4,000 to $3,952.47, with its 7-day price at a record 16.72% low.

Smaller volatile tokens like BNB, XRP, and Dogecoin are down 10.67%, 5.68%, and 4.67%, respectively, according to CoinGecko data. The latest rout has wiped off over $150 billion of the combined market value over a 24-hour period, the CoinGecko data shows. With a 3.3% fall in the past 24 hours, the total crypto market capitalisation has plunged below $4 trillion.

The sell-off was triggered last Friday when $19 billion in traders’ positions evaporated in one of the largest one-day liquidation events as Trump threatened China, with BTC plunging 10% and Ether by 14%.

However, experts say the crypto market could well be hitting the reset button as leverage clears and traders prepare for the next breakout.

Edul Patel, CEO of Bengaluru-based Mudrex, one of India's biggest crypto exchanges, said that concerns about a potential economic slowdown, particularly after new signs of weakness in the U.S. labour market, have made investors more risk-averse. "Despite this, buy-the-dip orders spiked across exchanges, resulting in $650 million liquidations, with the majority being short positions. For now, Jerome Powell’s speech at the NABE is the major factor that could influence the market momentum. Immediate resistance for BTC stands $118,700 while support has moved down to $110,500," he added.

Despite the chaos caused by the US and China tariff war, institutional accumulation continues, with Strategy and Bitmine buying BTC and ETH, as smart money remains confident in the long-term trajectory, a commentary by CoinSwitch markets desk states. "Bitcoin is consolidating between $113.5K and $116K after recent price swings, with buyers active near support. A sustained hold above $114K could trigger a gradual recovery toward $117K–$118K. Also, Fed Chair Jerome Powell is expected to speak today, which may shape expectations around rate cuts and broader monetary policy."

"The market is undergoing a delicate reset as leveraged positions unwind, with Bitcoin consolidating above $113,000 amid mounting economic headwinds and tariff volatility. Liquidation cascades and excessive leverage contributed heavily to last week’s sharp pullback, but this clearing of overstretched positions may lay the groundwork for the next up-leg,” says Avinash Shekhar, Co-Founder & CEO, Pi42.