20 July 2026
Crypto Market Slump As US House Speaker's Trip Weakens Risk Sentiment
Once again, the cryptocurrency market has come under pressure ahead of U.S. House Speaker Nancy Pelosi’s Taiwan visit on Wednesday. His visit could escalate tensions between the U.S. and China. Additionally, the $200 million Nomad hack and SEC charging 11 for the $300 million Forsage pyramid scheme are also the reasons behind the fall of crypto prices.
As per the Chinese Communist Party’s tabloid newspaper, the government of China is preparing a “series of countermeasures, including military actions.” There are likely disputes taking place, and traders have started pulling capital out of the market amid rising volatility.
Currently, Bitcoin is trading at $22,866, down 2% in the last 24 hours, and Ethereum slides 6% to $1583 price.
Nancy Pelosi, the speaker of the U.S. House of Representatives, plans to meet government officials in Taiwan, South Korea, Singapore, Malaysia, and Japan. During his visit to Singapore, the officials of Singapore stated the importance of stable U.S.-China relations for regional peace and security.
While Pelosi’s visit to Taiwan could raise tensions between China and U.S., with the military movements rising in the three countries. The Chinese government has asked its military “not sit idly by” if Nancy Pelosi visits Taiwan. In return, Taiwan and U.S. have moved military near the border and straits of Taiwan. The rising tensions between countries are causing capital markets to fall. In the last 24 hours, the crypto market witnessed a 3% fall.
Another reason for the correction of the crypto market is Nomad token bridge hack. Nearly $200 million was hacked from the Nomad token bridge after a recent change to smart contracts leading hackers to drain money from the bridge.
Also, the US SEC has charged 11 people for carrying out the Forsage pyramid scheme, which raised more than $300 million from retail investors.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice
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