The price of bitcoin, the world’s largest cryptocurrency by market capitalisation, dropped drastically to $112,000.
The drop comes more than a week after the cryptocurrency price rose to an all-time high of $125,000.
According to data from coinmarketcap.com, the cryptocurrency price traded 3 percent lower on Tuesday at $112,061 as at 8:30 am.
Similarly, the price of Ethereum, the second-largest cryptocurrency by market cap, also fell by 4.2 percent to $4,010.
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CoinMarketCap also said the global cryptocurrency market cap decreased by 3.3 percent to $3.89 trillion, and recorded over $242 billion transactions as at 08:30 am.
Bitcoin’s value had soared at the beginning of the year, supported by regulatory reforms under the US President Donald Trump, a vocal supporter of the digital asset sector.
However, reports show that cryptocurrencies dipped in value on October 10 in a short but significant flash crash, leaving investors with billions of dollars in losses and highlighting the volatility associated with the industry.
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On October 11, the bitcoin sell-off extended, with its price sharply dropping by 8.4 percent to $104,782, after Trump escalated the trade war with China by imposing 100 percent tariffs on Chinese tech exports and export controls on “any and all critical software”.
The announcement triggered a record $19 billion wipeout across the cryptocurrency market.
Traders reportedly jolted after the threat, sparking a sell-off in risky assets like tech stocks and crypto.
Network congestion was another reason for the recent slowdown, which limited some users’ ability to view event interaction data in real time, according to an announcement made through Binance Wallet’s official X account.
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The company assured users that the issue was display-related only.
