Bitcoin, Ethereum, XRP Drop. Why Cryptos Are Selling Off Again.

Physical imitations of bitcoins pictured at a cryptocurrency exchange branch near the Grand Bazaar in Istanbul. (YASIN AKGUL/AFP via Getty Images)

Bitcoin was tumbling on Tuesday after China ratcheted up trade tensions with the U.S. sparking more misery for the crypto market.

The world’s largest token was down 3% to $111,938 over the past 24 hours, according to data from CoinDesk. It’s now trading 13% off the record high it hit earlier this month.

Created with Highcharts 9.0.1Sources: CoinDesk (BTCUSD, SOLUSD); Kraken​(ETHUSD, XRPUSD)

Created with Highcharts 9.0.1SolanaEthereumXRPBitcoinOct. 12Oct. 14-5.0-2.502.55.07.510.012.515.017.520.022.5%

Ethereum was down 4.3%, Solana slid 1.1%, and XRP fell 6.6% over the past 24 hours, per data from the Kraken crypto exchange.

The selloff came after China on Tuesday hit back at the U.S. with countermeasures on trade. Beijing added five U.S. subsidiaries of South Korean shipping company Hanwha Ocean to its sanctions list, and said it would launch a probe into how the U.S.’s Section 301 investigation would impact its shipping and shipbuilding industries.

It’s not a surprise that cryptos were racking up losses. Digital tokens plummeted on Friday after President Donald Trump threatened to hike tariffs on China, then pared back some losses over the weekend after he signaled that he would be willing to reopen talks.

Bitcoin and its peers tend to move in tandem with other risk assets, such as growth stocks. When investors are fretting about trade tensions, they’ve tended to pivot into havens like gold.

Write to George Glover at george.glover@dowjones.com