Crypto crash deepens: $150 billion wiped out; US-China tensions hit investor confidence

The global crypto market lost over $150 billion in value after rising trade tensions between the US and China. Bitcoin and Ethereum dropped sharply, and more than $19 billion in trading positions were liquidated. Investors pulled large amounts from crypto ETFs. Markets are now watching Federal Reserve Chair Jerome Powell’s speech, which could impact interest rate expectations and market stability.

The cryptocurrency market fell sharply this week as tensions between the United States and China grew. Bitcoin, the world’s biggest cryptocurrency, dropped by 5% to below $110,000. Ethereum fell even more, by 9.3%, going under $3,900. Other smaller cryptocurrencies also saw price drops. The total value of the crypto market fell by over $150 billion in just 24 hours, based on data from CoinGecko.

The market crash started after US President Donald Trump said he would raise tariffs on all goods coming from China starting November 1. In response, China placed new limits on American businesses linked to Hanwha Ocean, a large South Korean shipbuilder. These actions increased tension between the two countries and made investors nervous. Stock markets in the US, Europe, and Asia also fell. Traders became more careful with risky investments like crypto.

Over the weekend, more than $19 billion worth of leveraged crypto trades were liquidated. This means traders who borrowed money to bet on crypto prices lost their positions. More than 1.6 million traders were affected, according to data from CoinGlass. Bitcoin and Ethereum made up nearly $10 billion of those liquidations. The Crypto Fear & Greed Index also dropped sharply, falling from a “Greed” rating of 64 to just 27, which signals “Fear.”

Investors pulled large amounts of money from US-based crypto ETFs. Bitcoin ETFs saw $326 million in outflows, while Ethereum ETFs lost $428 million. This shows that even big investors are nervous. Some experts believe Bitcoin may fall further and test the $104,000–$108,000 range before stabilizing.

While most cryptocurrencies fell, a few performed well. Solana (SOL) rose by 4.1% to $202. The biggest gain was seen in Story (IP), which went up 17% to $6.76. On the other hand, some coins dropped sharply. Zcash (ZEC) fell 19% to $225. Binance Coin (BNB) was down 4.2%.

All eyes are now on US Federal Reserve Chair Jerome Powell. He will speak at an economic meeting in Philadelphia this week. Traders hope his speech will give more clarity on possible interest rate cuts. Many expect the Fed to cut rates by 25 basis points in both October and December. A softer tone from Powell could calm markets and help crypto recover.

1. Why did the crypto market crash?The market crashed because of rising tension between the US and China. Many traders also faced big losses, and investor trust went down.
2. How much money was lost in crypto trading?More than $19 billion was lost in high-risk trades. Around 1.6 million traders were affected.
3. What can help the market recover?If the US central bank gives a clear update about cutting interest rates, it may help the market become stable again.