Cryptocurrency Market Declines Amid US-China Trade Tensions
The cryptocurrency market turned red as Bitcoin (BTC) fell below $110,000. The drop is linked to ongoing trade tensions between the U.S. and China.
At the time of this report, Bitcoin trades at $108,027, down 2.97% in the last 24 hours. Traders reacted quickly to the geopolitical developments.
Major Cryptocurrencies Experience Losses
Ethereum (ETH) dropped 2.5% to $3,901, while XRP fell 4% to $2.34, according to CoinMarketCap. Other coins like Solana, Cardano, and Dogecoin lost between 3% and 5%.
The overall crypto market capitalization decreased by 2.59%, now at $3.67 trillion. The Fear and Greed Index stands at 32, indicating strong investor caution and risk aversion.
Liquidations and Bearish Sentiment Increase
- About 209,371 traders were liquidated in the past 24 hours.
- Approximately $692 million in positions were liquidated, per CoinGlass data.
- This follows a $19 billion liquidation event last weekend that affected leveraged traders.
Options traders are showing bearish sentiment. Analytics platform GreeksLive reports that over $1.15 billion, or 28% of total options volume, flowed into shallow out-of-the-money puts. Investors are hedging against further Bitcoin declines, focusing on strike prices between $104,000 and $108,000.
