Bitcoin Price Drops Below $112K as Crypto Market Falls on China Trade War Fears

The cryptocurrency market experienced significant declines as Bitcoin fell below $112,000 amid escalating trade tensions between China and the United States. According to market data, Ethereum dropped 4% to approximately $4,000 while Dogecoin and other major altcoins declined 5-6% during Tuesday's trading session. Global risk assets faced substantial pressure after China imposed new sanctions on US units of South Korean shipbuilder Hanwha Ocean, reigniting concerns about expanding trade conflicts. The crypto market downturn coincided with broad-based declines across traditional markets, with S&P 500 futures falling 0.7% and Japan's Nikkei index dropping over 3%. Market data from CoinGlass revealed total liquidations reached $630 million, with long positions accounting for the majority of losses. The current correction extends the volatility that began following former President Trump's tariff threats last week, which previously triggered crypto's largest-ever liquidation event with nearly $20 billion in positions erased across derivatives markets. The correlation between cryptocurrency prices and global macroeconomic risks remains strongly evident, with Sunday's recovery nearly completely reversing as risk-off sentiment dominates trading.