The most recent significant crash in the cryptocurrency market, which affected both China and the US (as well as the global market), was largely attributed to a major escalation in the US-China trade tensions.

Specifically, a recent event that caused a record liquidation and sharp price drop was:

US President Donald Trump's announcement of a 100% tariff on Chinese imports (particularly on Chinese tech and critical software), which triggered a major panic in global financial markets, including crypto.

This event caused the crypto market to experience:

Massive Liquidations: The sudden fear and sell-off triggered the forced closure of a huge number of leveraged trading positions (bets made with borrowed money), leading to a cascading effect that amplified the crash.

Widespread Selling: Investors rushed to sell their assets due to fears of an escalating trade war disrupting global technology supply chains and slowing economic growth.

Historically, other factors related to China and the US that have caused significant crypto market turmoil include:

China-Related Factors:

Crypto Bans: China has historically implemented very stringent and sweeping bans on various crypto activities, including:

Mining: Banning cryptocurrency mining operations.

Trading and Transactions: Prohibiting all transactions involving digital assets and forcing exchanges to close.

These bans remove a massive source of capital and activity from the market, causing dramatic price drops.

US-Related Factors:

Regulatory Uncertainty: Ongoing debates and lack of clear, consistent regulation from US bodies like the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) often create uncertainty, leading to investor caution and sell-offs.

Interest Rate and Monetary Policy: When the US Federal Reserve increases interest rates or tightens monetary policy, it makes holding traditional assets like US Treasuries more attractive and reduces the money supply in the economy. This often leads investors to sell off riskier, more speculative assets like cryptocurrencies.