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 into the red.
Crypto Market Tumbles
The global cryptocurrency market shed roughly $115 billion Monday afternoon (EU time), falling nearly 2%.
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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%.
Major cryptocurrencies experienced a downturn on May 19. Source: CoinMarketCap 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.
China is criticizing the U.S. for tightening chip export controls just days after both countries made progress on a trade deal during talks in Geneva.
The US and China recently took part in WTO talks in Geneva, where they reportedly reached a certain agreement or mutual understanding on trade or cooperation.
China now claims that the US’s new chip export restrictions violate the consensus reached during those negotiations.
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.
“The market is likely assuming that this tariff policy will be short-lived, but the assumption that the trade war with China will end soon may be misguided,” says crypto analyst Reef Insighs.
Others in the community are bracing for more volatility. “Ah geez, looks like the markets are about to go wild again,” sighed one trader.
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.
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