The sudden market downturn comes as investors react to the economic uncertainty sparked by the new trade restrictions, resulting in significant losses across the crypto sector.
Bitcoin, the leading cryptocurrency, saw its value plummet by 7.75% to $76,800, with its market cap shrinking to $1.52 trillion.
Ethereum faced a significant blow, shedding 14.5% of its value to trade at $1,544.
The increased volatility also triggered widespread liquidations, totaling over $1 billion in the past 24 hours.