What Happened?

The crypto market lost over $150 billion in value in just 24 hours as Bitcoin and other digital coins tumbled. Bitcoin dropped 5% to below $110,000, while Ethereum fell over 9% to under $3,900.

This follows a brutal weekend where $19 billion worth of leveraged crypto bets got wiped out.

Why Crypto Is Falling

The selloff started when President Trump threatened China with bigger tariffs after China blocked exports of rare earth minerals. On Tuesday, China hit back by punishing a Korean shipbuilder's American businesses.

When the U.S. and China fight over trade, investors get scared and pull money out of risky investments. Crypto is seen as very risky, so it gets hit hard.

How Bad Is It?

Investors yanked $756 million out of Bitcoin and Ethereum funds on Monday alone. That shows traders are nervous and want their money back.

Analysts say if Bitcoin falls below $110,000, it could drop all the way to $104,000. One research firm called this "a consolidation phase" with "renewed caution" - fancy words for saying people are scared.

Companies Getting Hurt Too

Some public companies bought tons of Bitcoin as an investment. Now they're suffering. Japan's Metaplanet saw its stock crash 12% on Tuesday. The company is now worth less than the Bitcoin it owns.

The Bottom Line

Crypto goes up fast when times are good and crashes hard when investors get scared. Right now, the U.S.-China trade war has everyone worried, and crypto is paying the price.