The price of Bitcoin, the world’s largest cryptocurrency by market capitalization, plunged sharply to around $112,000 on Tuesday, marking a significant drop after hitting an all-time high of $125,000 just over a week ago.
Data from CoinMarketCap showed Bitcoin trading down by 3 percent at $112,061 as of 8:30 AM.
Similarly, Ethereum, the second-largest cryptocurrency, fell by 4.2 percent, trading at approximately $4,010.
The overall global cryptocurrency market cap also contracted by 3.3 percent, sliding to $3.89 trillion, with over $242 billion worth of transactions recorded by the same time.
Bitcoin’s value had experienced rapid gains earlier this year, bolstered by regulatory reforms under former US President Donald Trump, a noted advocate of digital assets.
However, the market volatility was on full display on October 10, when a sudden flash crash caused massive sell-offs, wiping out billions in market value.
The downward trend intensified on October 11 after Trump escalated tensions in the ongoing trade war with China, announcing 100 percent tariffs on Chinese tech exports and strict export controls on critical software. This triggered a sharp 8.4 percent drop in Bitcoin’s price to about $104,782, contributing to a record $19 billion wipeout across the crypto market.
Investors reacted nervously to the escalating geopolitical tensions, leading to sell-offs in risk-sensitive assets like technology stocks and cryptocurrencies.
Additionally, network congestion issues on Binance Wallet, announced via their official X (formerly Twitter) account, briefly disrupted real-time data visibility for some users. Binance reassured that the problem was limited to display errors and did not affect actual transactions.
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