The cryptocurrency market witnessed a dramatic downturn recently, shedding over $200 billion in value. This significant decline was primarily fueled by escalating geopolitical tensions between the United States and China. Bitcoin, the world’s most popular cryptocurrency, suffered a notable drop, reaching a multi-week low after trading near its record high of $112,000. The overall market capitalization fell to approximately $3.36 trillion according to data from CryptoPotato and CoinGecko. Analysts suggest that these tensions are driving investor sentiment away from riskier assets like cryptocurrencies and towards safer investments such as gold or government bonds. While Bitcoin’s price decline had a ripple effect on the entire market, it’s crucial to understand the specific factors driving this volatility.