The price of Bitcoin has slumped sharply to $112,000, extending losses across the cryptocurrency market as escalating trade tensions between the United States and China trigger widespread risk aversion among investors.
After rallying to a record high of $125,000 just over a week ago, the world’s largest digital asset by market capitalization is now struggling to hold above the $112,000 support zone. As of 8:30 a.m. (ET) on Tuesday, Bitcoin was trading around $112,061, according to data from CoinMarketCap, marking a 3 percent daily decline.
The renewed market sell-off came as both Washington and Beijing exchanged threats of fresh tariffs and trade restrictions. The U.S. government recently unveiled plans for 100 percent tariffs on select Chinese imports, prompting Beijing to announce counter-measures that rattled financial markets.
The escalating dispute has spooked global investors, pushing them to exit riskier assets such as cryptocurrencies while seeking safety in traditional havens like gold and U.S. Treasury bonds.
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Other leading cryptocurrencies also suffered from the downturn. Ethereum slid over 4 percent, Solana dropped by more than 5 percent, and the total global crypto market capitalization shed billions within 24 hours, according to CoinMarketCap data.
Analysts say the $112,000 mark represents a crucial short-term support level for Bitcoin. If breached, the next key area of defense could be around $108,000, while resistance is expected between $115,000 and $123,000.
Despite the short-term volatility, long-term investors remain optimistic that the broader market will stabilize once geopolitical tensions ease and risk appetite returns. However, for now, caution dominates sentiment across both traditional and digital asset markets.
