Here's What Investors Need to Know About This Weekend's Massive Crypto Rout

Core Insights - The recent U.S.-China trade tensions have led to a significant sell-off in the cryptocurrency market, marking it as the largest single-day liquidation event in crypto history, with over $19 billion in leveraged bets liquidated [2][8] - Bitcoin's price, which had been rising, fell below $110,000, diverging from gold and aligning more closely with risk assets like stocks due to the renewed trade conflict [2][4] Market Dynamics - The sell-off affected approximately 1.6 million traders, with estimates suggesting the actual total of liquidations could be higher than reported [2] - The operational characteristics of the crypto market, including lower liquidity during the sell-off, exacerbated the price declines, leading to significant losses for many altcoins [5][6] Price Movements - Following the liquidation event, Bitcoin's price has shown signs of recovery, recently climbing back above $112,000, although many crypto-linked stocks have continued to decline [7] - Some lesser-known cryptocurrencies experienced drastic price drops, with some losing up to 80% of their value over the weekend [8]