Bitcoin came under heavy selling pressure as rising tariff tensions between the United States and the European Union rattled crypto markets. The asset slid from $95,500 to $92,474 in roughly four hours, a drop of nearly 3%. The move spread across the market, with Ethereum, XRP, and Solana posting similar declines as leveraged positions were forced out.
More than $750 million in long liquidations hit within four hours
According to Coinglass, over $750 million in long positions were liquidated during that four-hour stretch. The pace of those liquidations pointed to a market still heavily dependent on leverage, while also showing how quickly macro concerns can feed into crypto pricing. The report noted that digital assets were notably weaker than some traditional risk assets, which stayed flat or posted slight gains during the same period.
Min Jung, a researcher at Presto Research, said cryptocurrencies have been lagging other asset classes in recent trading, with trade war concerns weighing directly on sentiment. In her view, even as broader global markets have shown signs of recovery, investors are treating the crypto sector with more caution.
Tariff threat meets policy uncertainty
The immediate backdrop was US President Donald Trump’s threat to raise tariffs on some European countries if Denmark refuses to sell Greenland to the United States. The proposed tariffs would begin at 10% in February and rise to 25% by June, targeting eight NATO members including Denmark, Germany, France, and the United Kingdom. Reuters reported that European capitals were already preparing retaliatory steps.
BTC Markets analyst Rachael Lucas said the decline should not be explained by headlines alone, because weakness in crypto had started earlier. She also pointed to added uncertainty from the suspension of a US bill on crypto market structure and Coinbase withdrawing its support.
Technical breakdown adds to the decline
On the charts, Bitcoin falling below its 50-week average triggered algorithmic selling. That technical damage came alongside $4.4 billion in withdrawals from spot Bitcoin ETFs across November and December, while open interest in futures markets also moved lower. Lucas said that if macro pressure continues, Bitcoin could fall into the $67,000 to $74,000 range, though she added that the sector is more mature than in previous cycles.