Crypto prices slid on Monday, with investors rattled by renewed global tensions and tech market jitters.

The global cryptocurrency market shed roughly $115 billion Monday afternoon (EU time), falling nearly 2%.

Crypto prices slid on Monday, with investors rattled by renewed global tensions and tech market jitters. The drop wiped out around $115 billion in market value, dragging major tokens like Bitcoin and Ethereum into the red.

Crypto Market Tumbles

The global cryptocurrency market shed roughly $115 billion Monday afternoon (EU time), falling nearly 2%.

Solana led the losses with a drop of over 6%, while other major altcoins, including Ethereum (ETH), Avalanche (AVAX), Cardano (ADA) and XRP (XRP), fell more than 3%.

The crypto market decline coincided with signs of renewed tensions between China and the U.S., after Beijing accused Washington of violating a chip export consensus reportedly reached during recent trade talks in Geneva.

US-China Chip Fight Heats Up Again?

As recently reported by The Kobeissi Letter, a widely followed financial newsletter, China has criticized the U.S. for tightening chip export controls, saying the move ‘seriously undermines the consensus’ reached during recent trade talks in Geneva.

This dispute highlights the rising stakes in the global chip war, where semiconductors now sit at the heart of economic power and national security, fueling everything from AI to advanced weapons systems.

Tech Sell-Off and Chip Trade Uncertainty Fuel Investor Caution

US stocks took a hit on Monday, with the S&P 500 falling 0.3% and the Nasdaq slipping 0.5%. Since crypto markets often mirror traditional stock movements, the recent pullback is sparking concern across the crypto space.

Many blockchain projects (exchanges, decentralized apps, and networks) run on cloud-based infrastructure, which relies on advanced processors. A weaker semiconductor supply means higher tech costs, potentially slowing development and increasing operational expenses across the crypto ecosystem.

Why This Matters

Geopolitical tensions surrounding semiconductors often ripple through the entire tech sector. As cryptocurrencies are seen as high-risk tech investments, as a result, when markets grow anxious about chip supply, investors may also pull back from crypto.