Bitcoin Dips Around $92K as Trade War Woes Shake Market
Yesterday Bitcoin prices hovered near $92,000, following a decline triggered by worries over a possible intensification of tariffs between the U.S. and the European Union. The leading digital currency experienced a drop to $91,935.30 around 8:30 p.m. on Sunday, having traded above $95,000 earlier in the day, as reported. It subsequently bounced back to over $93,200 at approximately 4 a.m. on Monday. The cryptocurrency underwent another decline, dropping to about $92,700 at around 10:30 a.m., before recovering to an intraday peak of approximately $93,300 near noon, according to data. Bitcoin prices subsequently experienced a downturn, dropping to nearly $92,300 around 7:30 p.m., a level they were approaching at the time of this report. In discussing the recent price movements of the digital asset, analysts surveyed for this article shared their perspectives on the factors that led to the decline in bitcoin prices over the weekend. Primarily, the discussion centered on worries about the potential implementation of extra tariffs. Additionally, a few participants highlighted other elements, such as low liquidity and leverage, which they believe could intensify price fluctuations.
President Donald Trump announced on Truth Social that beginning February 1, eight countries—specifically “Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland”—will be subject to a 10% tariff on all goods and services exported to the U.S. On June 1, that figure will rise to 25%.
This development has seemingly stirred reactions among EU members, as representatives from the 27 countries convened on Sunday to deliberate their response, according to a report. Stefan Lutz shared his insights on these issues. “At times, the motivations driving these fluctuations are unclear, and one must analyze the chart lines closely to grasp the market dynamics.” At other times, like today, it’s much simpler: trade wars are back on the agenda. “In fairness, the truth is a little more nuanced than this – global tensions have been rising all year and the Greenland debacle is merely the latest and strangest stage for growing geopolitical disquiet,” stated Lutz.
“No one desires a repeat of a U.S.-EU trade war, and although President Trump’s threats may be more bluster than action, the market has responded in a manner that aligns perfectly with expectations.” Jacob Joseph shared a comparable perspective, noting that “Bitcoin’s recent decline below $93,000 has coincided with heightened macroeconomic uncertainty, particularly surrounding renewed trade tensions. These include tariff measures announced by President Trump against countries opposing the U.S.-Greenland deal, as well as consideration of retaliatory tariffs imposed by the European Union in response,” he clarified. “The resulting risk-off sentiment has weighed on broader traditional markets, with spillover effects into the digital asset sector.” Jonatan Randin provided further insights into the factors that contributed to bitcoin’s recent downturn. “The initial 3% decline triggered $865 million in liquidations within 24 hours, with 90% coming from overleveraged longs,” he noted.
“That selling pressure was compounded by large holders moving coins to exchanges at the highest rate in 10 months, while ETF outflows of nearly $400 million added further weight after $1.7 billion came in earlier in the week.” Paul Howard specifying that “With the US on Martin Luther King holiday, post-weekend liquidity is thin, which has contributed to a 2.2% drawdown that is likely outsized relative to the catalyst.” Convert it into 4 para format, don’t add-delete something, just merge where needed, don’t change word count, Same size paras
