Crypto Market Faces $150B Meltdown as Geopolitical Tensions Spark Renewed Selloff

The cryptocurrency market endured another wave of losses on Tuesday, deepening the pain from a historic weekend selloff that erased billions in value across digital assets.

Bitcoin slipped as much as 3.75% to around $111,500, while Ether plunged 7.5% below $4,000, marking a sharp continuation of the weekend’s volatility. Altcoins saw even steeper declines, sending the combined market capitalization of all cryptocurrencies down by more than $150 billion in just 24 hours.

The renewed downturn comes amid mounting geopolitical strains. China imposed new restrictions on the American divisions of Hanwha Ocean Co., one of South Korea’s largest shipbuilders, in retaliation for fresh U.S. measures targeting China’s shipping industry. The move followed U.S. President Donald Trump’s recent warning of harsher tariffs, which initially triggered the October 10 selloff that liquidated roughly $19 billion in leveraged crypto positions.

While digital assets briefly recovered on Monday, the rebound proved short-lived. Data shows investors withdrew $756 million from U.S.-based Bitcoin and Ether exchange-traded funds, highlighting growing caution among both retail and institutional traders.

Market observers now view this phase as a critical consolidation period, where investors are expected to adopt a more defensive stance, focus on selective opportunities, and gradually rebuild confidence in both spot and derivatives markets after one of crypto’s most volatile weekends in recent memory.