Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnAISquareMore
Bitcoin Prices Plummet as US-EU Tensions Escalate

Bitcoin Prices Plummet as US-EU Tensions Escalate

CointurkCointurk2026/01/19 07:45
By:Cointurk

In the last 24 hours, Bitcoin and the broader cryptocurrency market have experienced significant selling pressure driven by escalating tariff tensions between the United States and the European Union (EU), creating global uncertainty. Bitcoin’s price swiftly decreased from $95,500 to below $92,500, with this downward pressure extending to major altcoins, primarily Ethereum. This sharp decline in the U.S. markets also triggered substantial liquidations in leveraged positions, revealing the fragility in investor sentiment. Market participants agree that the price movement was shaped not only by technical factors but also by the re-emergence of geopolitical risks as a significant concern.

US-EU Tensions Accelerate Crypto Market Sales

On Sunday, Bitcoin, which was trading at $95,500, plummeted to $92,474 within approximately four hours, losing nearly 3% of its value. During the same period, high-volume altcoins such as Ethereum, XRP, and Solana experienced similar declines. This rapid price pullback highlighted the heavily leveraged nature of the cryptocurrency market once again.

According to Coinglass data, over $750 million in long positions were liquidated within just four hours. Analysts emphasized that the acceleration in liquidations underscored increasing investor sensitivity to macro risks and tightening liquidity conditions. The overall weaker performance of the cryptocurrency market, particularly notable compared to some traditional risky assets that exhibited stable or slight gains during the same period, caught the attention of many observers.

Min Jung, a researcher at Presto Research, noted that cryptocurrencies have recently been lagging behind other asset classes, with trade war concerns clearly impacting sentiment. Jung elaborated that despite a broader recovery trend in global markets, investors are adopting a more cautious stance with respect to the cryptocurrency sector.

Tariff Threat, Policy Uncertainty, and Technical Breakdown

The backdrop of these tensions includes U.S. President Donald Trump’s threat to increase tariffs on some European countries if Denmark refuses to sell Greenland to the U.S. The tariffs, slated to start at 10% in February and rise to 25% by June, target eight NATO members, including Denmark, Germany, France, and the United Kingdom. Reactions from European capitals have been fierce, with preparations for retaliation reported by Reuters.

BTC Markets analyst Rachael Lucas asserted that the price movement should not be solely attributed to headlines, indicating that weakness in the crypto market began earlier. Lucas pointed out significant factors contributing to the increased uncertainty, such as the suspension of a U.S. bill on cryptocurrency market structure and Coinbase withdrawing its support.

From a technical perspective, Bitcoin dropping below its 50-week average triggered algorithmic selling. The withdrawal of $4.4 billion from spot Bitcoin ETFs in November and December and the reduction in open positions in futures markets reinforced the decline in risk appetite. Lucas noted that, despite ongoing macroeconomic pressures, the price could drop further to the $67,000–$74,000 range, but emphasized that the sector has matured compared to previous cycles.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

From the Token Frenzy to the $1.3 Trillion AI Server Blue Ocean: AI Inference Computing Power Fully Explodes, Industry Leaders like Dell Usher in the Golden Era of "Volume, Price, and Market Share"

Leading global AI server cluster manufacturers such as Dell are simultaneously benefiting from two major growth dividends: the accelerated expansion of the AI server market and a significant increase in the order shares from core AI cloud computing customers, including large enterprises and new cloud providers. They are not merely passively profiting from hardware price increases.

智通财经2026/09/17 04:36
From the Token Frenzy to the $1.3 Trillion AI Server Blue Ocean: AI Inference Computing Power Fully Explodes, Industry Leaders like Dell Usher in the Golden Era of "Volume, Price, and Market Share"

GPU Cloud Services Surge in Price: Nebius Raises Prices Again by 20%, Computing Power Supply Side Gains Bargaining Power

From October 1st, Nebius will raise prices for its entire GPU cloud service line by approximately 20%, with multiple chips from H100 to B300 seeing increases. This marks the second round of price hikes in recent months, and the cumulative increase for B300 has reached 56%. Demand visibility extends beyond 24 months, with customers eager to purchase Blackwell computing power, even willing to pay a premium in auctions. The supply-demand imbalance for AI computing power is reshaping the entire industry’s negotiation landscape, as bargaining power is quietly shifting to the supply side.

华尔街见闻2026/09/17 04:26