UPDATE: Crypto has collapsed much more – here’s our live coverage with latest news.
Just hours after the market was already shaken, the sell-off across the crypto world has only intensified.
Bitcoin, which earlier dropped below the key $120,000 level, has now fallen further and is trading around $117,000. That marks a daily loss of over 3.5%. Ethereum has taken an even steeper hit, slipping under the $4,000 line and dropping 7.5% in the last 24 hours. The pressure is visible across the board, with most major cryptocurrencies following the same pattern.
The drops were so severe that the CoinGlass website, a service tracking liquidations and leveraged positions, had an outage.
Read also: Bitcoin Breaks Below $120K in Minutes, Altcoins Hit Hard – What’s Going On?
Losses Accelerate after Trump’s Latest Comments
The fresh wave of selling came after U.S. President Donald Trump threatened to impose a “massive increase” in tariffs on Chinese goods. He also confirmed he would no longer meet with Chinese President Xi Jinping at the upcoming APEC summit. The situation has sparked fears of a renewed and possibly more aggressive trade war.
Global markets reacted quickly. The Dow closed down nearly 880 points. The Nasdaq saw its worst day since April, falling over 3.5%, while the S&P 500 dropped almost 3%. Risk-off sentiment spread fast, and crypto did not escape the fallout.
This reaction is strikingly similar to what happened earlier this year in April. Back then, Trump also issued tariff warnings, and the crypto market responded with a sharp drop – only to recover a few weeks later. Whether this time will follow the same pattern remains to be seen, but the comparisons are hard to ignore.
We’ve described it here: Crypto Crashes After Liberation Day
Ethereum Leads the Fall
Among major coins, Ethereum has seen the biggest losses. It is now trading near $3,960, after briefly dipping further during late trading. That’s a 7.5% drop for the day and over 12% down for the week.
Other cryptocurrencies have all turned red as well. XRP is now at $2.69, Solana trades around $207, and BNB – one of the few tokens holding up relatively well – is down just 1%, still trading above $1,200.
It’s important to remember that the current drop is not about crypto-specific issues. Blockchain infrastructure remains stable, and no crypto outages have been reported. Instead, this is a wider shift in market mood, tied closely to concerns over trade tensions, global supply chains, and a more cautious outlook from investors.
Read also: Fusaka Upgrade: What’s Next for Ethereum After Pectra?
A Test of Confidence
The sudden fall in prices has brought back memories of previous shocks – and how the market eventually rebounded. In April, after a similar round of tariff talk-driven selling, crypto prices managed to recover once the tariff situation was slowly resolved.
Either way, the past hours have shown just how sensitive markets are right now. As the situation between the U.S. and China develops, crypto remains closely tied to global sentiment – and for now, that sentiment is nervous. But if you’re here because you believe in the blockchain technology, or because you see long-term potential, try not to get shaken out by something that has absolutely nothing to do with crypto itself.
