Cryptocurrency market evaporates $18 billion due to US-China trade tensions

President Donald Trump's threat to impose an additional 100% import tax on goods from China triggered a massive sell-off in cryptocurrencies late on October 11, highlighting the huge risk for investors using leverage.

Digital currencies bitcoin, ether and solana were among the hardest hit, with the combined value of forced sell orders reaching $18.28 billion as of 3:47 p.m. ET, according to data analytics platform CoinGlass.

The cryptocurrency's decline comes amid a broader stock market plunge, with the Nasdaq and S&P 500 both posting their biggest declines in six months on October 10.

According to CoinGlass, in just the past 24 hours, about $5 billion worth of Bitcoin, $4 billion worth of Ether, and $2 billion worth of Solana have “evaporated” from the market due to forced sell-off orders, and this is the largest sell-off event in cryptocurrency history.

Bitcoin has fallen nearly 10% in the past five days and hit $111,616.20 per Bitcoin, recovering slightly from a low of $103,000 on the afternoon of October 10. At the same time, ether was at $4,365.63 before falling to $3,742.88, a 14.2% drop. Solana also fell sharply, from $223.10 to $178.72, a nearly 20% drop in the afternoon.

Trade tensions between the US and China escalated again on October 9 when China restricted exports of key rare earth minerals. Cryptocurrency markets have seen strong growth since Mr. Trump took office this year, largely due to the president’s change of stance.

Edward Chin, CEO of crypto hedge fund Parataxis, said the market has recovered somewhat from the sell-off on October 10, but it will take several more days to fully assess the extent of the damage. He predicted that in the coming days or weeks, there will likely be reports of some funds going bankrupt or market makers suffering significant losses.

Source: https://vtv.vn/thi-truong-tien-dien-tu-boc-hoi-18-ty-usd-truoc-cang-thang-thuong-mai-my-trung-100251012185842017.htm