The Bitcoin and cryptocurrency market has entered a sharp sales wave in the last 24 hours with the global uncertainty created by the escalating customs tax tension between the USA and the European Union (EU). As Bitcoin slumped from $95,500 to below $92,500 in a few hours, the selling pressure spread to major altcoins, especially Ethereum. The accelerated decline in US markets in the evening hours triggered massive liquidations of leveraged positions and made visible the fragility in investor sentiment. Market actors agree that the price movement is shaped not only by technical reasons but also by bringing geopolitical risks back to the agenda.
US-EU Tension Accelerated Sales in the Cryptocurrency Market
Bitcoin, which was traded at $95,500 on Sunday, lost nearly 3 percent of its value on the same day, falling to $92,474 in about four hours. In the same time period, high-volume altcoins such as Ethereum, XRP and Solana also decreased at similar rates. The withdrawal of prices in a short time brought the leverage-intensive structure of the market back to the agenda.
According to Coinglass data, more than $750 million in long positions were liquidated in just four hours. Analysts emphasized that investors’ sensitivity to macro risks increased and liquidity conditions tightened as liquidations accelerated. It was noteworthy that the cryptocurrency market showed a weaker performance compared to some traditional risky assets, which showed a flat or limited rise during the same hours.
Min Jung, who works at Presto Research, stated that cryptocurrencies have remained relatively weak compared to other asset classes recently, and that the effect of trade war concerns on sentiment has become evident. According to Jung, investors are adopting a more cautious stance on the cryptocurrency market, despite the recovery trend in global markets.
Tariff Threat, Policy Uncertainty and Technical Breakdown
In the background of the tension, US President Donald Trump threatens to increase customs duties on some European countries if Denmark does not sell Greenland to the US. The tariffs, which are expected to start at 10 percent in early February and rise to 25 percent by June, cover eight NATO members, including Denmark, Germany, France and the United Kingdom. Harsh reactions and preparations for retaliation from European capitals were reflected in global markets with news from Reuters.
BTC Markets analyst Rachael Lucas stated that the price movement should not be attributed only to the headlines and said that the weakness in the cryptocurrency market started earlier. According to Lucas, the suspension of the bill on the crypto market structure in the USA and Coinbase’s withdrawal of support was an important factor that increased uncertainty. The Senate Banking Committee’s delay in the process has clouded the outlook on the regulatory side.
From a technical perspective, Bitcoin’s fall below the 50-week average triggered algorithmic sales. The total outflow of $4.4 billion from spot Bitcoin ETFs in November and December and the decrease in open positions in futures reinforced the decline in risk appetite. Lucas emphasized that if macro pressures continue, the price may be pulled to the 67,000-74,000 dollar band, but the sector has a more mature structure compared to past cycles.
