Bitcoin slips as US–EU trade tensions trigger $864M crypto liquidations
Bitcoin fell about 3% to roughly $92,284 during early Asian trading after escalating U.S.–EU trade tensions sparked broad selling across crypto markets. The drop pushed total liquidations to over $864 million, with approximately $783 million in long liquidations occurring mostly within a 12‑hour window (CoinGlass). Major tokens including ETH, BNB, XRP and SOL also declined, dragging total crypto market cap down ~2.8% to $3.22 trillion. Contributing factors: President Trump’s tariff threats against several European nations with levies starting at 10% (rising to 25% by June if unresolved), EU plans for retaliatory duties on €93bn of U.S. goods, and renewed geopolitical uncertainty. Market-specific pressures included a delayed Senate markup for the Digital Asset Market Clarity Act after withdrawal of support from key players and $394.7m in net outflows from 12 spot Bitcoin ETFs on Jan. 16 (SoSoValue). Technicals show BTC approaching a key ascending trendline and the 50‑day SMA; a breakdown could target the Dec.18 low near $84,500, while a rebound above the 50‑day SMA could aim for resistance near $98,000. Momentum indicators (MACD bearish crossover, RSI retreating from overbought) favor a bearish bias. Disclosure: not investment advice.
Bearish
The news combines macro geopolitical risk (escalating U.S.–EU tariff threats and potential retaliatory duties) with sector-specific negatives (large long liquidations, ETF outflows, and legislative delays). Historically, geopolitical shocks that spark risk-off sentiment frequently trigger short-term crypto sell-offs and cascade liquidations, amplifying moves downward. The $864M in liquidations—predominantly long—indicates forced deleveraging that can accelerate a decline. Technical indicators reinforce the negative outlook: BTC is near a key ascending trendline and the 50‑day SMA; a break below these supports could prompt a drop toward the December low (~$84.5k). In the short term expect elevated volatility, further downside risk, and potential continuation of outflows as traders de-risk. In the medium-to-long term the impact depends on whether trade tensions are resolved and on progress in U.S. crypto legislation; resolution or positive legislative news could restore risk appetite and fuel a rebound toward resistance levels (~$98k), while prolonged geopolitical or regulatory uncertainty would sustain bearish pressure. Traders should monitor liquidation data, ETF flows, macro headlines on tariffs, and the BTC 50‑day SMA/ascending trendline for trade signals.