The global cryptocurrency market has experienced a sharp downturn, wiping billions of dollars in investor wealth. According to CoinGecko data, the market’s total value has plunged by over $600 billion in just a week, marking one of the steepest declines in recent months.<\/p>\n
Bitcoin, the largest cryptocurrency<\/a>, fell 4% to $103,550 on Friday morning, hitting its lowest level since June after reaching a peak of $126,000 in early October. Other major tokens also suffered heavy losses, with Ethereum slipping under $3,700 on Friday. The Binance-linked coin, the world’s fourth-largest cryptocurrency, slumped nearly 11% on the same day, according to Bloomberg.<\/p>\n FxPro chief market analyst Alex Kuptsikevich described Friday’s drop as an \u201ceven more dangerous dynamic\u201d than the previous week, indicating a \u201cmassive sell-off in search of a new bottom\u201d, Barron\u2019s reported.<\/p>\n What triggered this decline?<\/p>\n The primary cause of the market turmoil was the escalation of the US-China trade war. Last Friday, CNN reported that the crypto market experienced a \u201cmini crash\u201d after US President Donald Trump threatened to impose 100% tariffs on some Chinese imports,<\/a> resulting in $19 billion in liquidated positions.<\/p>\n Furthermore, a massive flow of investors exited the crypto market, with them withdrawing a net $593 million from US-listed Bitcoin and Ether exchange-traded funds on Thursday. This sell-off was driven by risk-off sentiment, which has been sweeping through markets.<\/p>\n \u201cMore than anything, I think crypto is acting like a canary in the coal mine, suggesting the market is on edge because of emerging credit worries,\u201d Matthew Hougan, chief investment officer at Bitwise, told Bloomberg.<\/p>\n Gold and silver rise<\/p>\n