Bitcoin Slips Below $93K as U.S.–EU Trade Tensions Rattle Crypto Markets
Bitcoin and the wider cryptocurrency market slid sharply on Sunday evening as renewed fears of an escalating trade dispute between the United States and the European Union shook already fragile investor confidence.
The largest cryptocurrency fell from around $95,500 to roughly $92,474, marking a swift 3% drop in just a few hours. Major altcoins such as Ethereum, XRP, and Solana mirrored bitcoin’s decline, reinforcing the market-wide nature of the move.
The sudden downturn triggered heavy forced selling, with more than $750 million worth of leveraged long positions wiped out within four hours, according to Coinglass data compiled from public sources. The liquidations highlighted how sensitive crypto markets remain to macro and geopolitical headlines.
Market sentiment soured after reports that U.S. President Donald Trump had threatened to impose escalating tariffs on imports from several European NATO allies. The proposed measures would reportedly begin at 10% in early February and rise to as high as 25% by June, unless Denmark agrees to sell Greenland to the United States. European leaders quickly condemned the move, warning that it could push transatlantic relations into a dangerous spiral.
European Union officials are now said to be weighing retaliatory steps, ranging from new taxes on U.S. firms to restrictions on American services and investment access across Europe, adding another layer of uncertainty to global markets.
While traditional risk assets showed relative resilience, crypto once again lagged behind. The divergence suggested that digital assets are grappling with internal headwinds beyond geopolitics, even as broader markets attempt to stabilize.
The latest sell-off also comes against the backdrop of weakening crypto-specific fundamentals. Bitcoin has been consolidating for months following its October 2025 peak near $126,000, with profit-taking steadily increasing. A recent dip below key long-term technical levels reportedly triggered algorithmic selling, while spot Bitcoin ETFs saw billions in net outflows late last year and futures open interest declined sharply.
If macro pressures and regulatory uncertainty continue, some market watchers believe bitcoin could revisit the $67,000–$74,000 range. Still, despite the volatility, the current pullback is widely viewed as different from past crypto winters, with the industry now more mature and supported by clearer — if slower-moving — regulatory signals.