EU tariff fears push crypto lower — BTC, LINK, SUI, HBAR slide
Crypto markets retreated as geopolitical and regulatory developments triggered a broad risk-off move. Bitcoin fell about 2.7% to roughly $92,548, dragging the total crypto market cap down ~3% to $3.2 trillion. Major altcoins saw larger declines: Chainlink (LINK) -7% to $12.74, Sui (SUI) -12% to $1.56, Hedera (HBAR) -7% to $0.109. The Crypto Fear & Greed Index dropped five points to 44, shifting sentiment toward fear. Derivatives data showed stress: liquidations surged (CoinGlass reported a ~726% jump to ~$870 million) while open interest eased to $137 billion and the average RSI across top tokens fell to 35, indicating weak momentum. Drivers included U.S. tariff announcements on EU goods (10% — with a possible rise to 25%), which sparked capital flows into traditional safe havens and prompted rapid deleveraging in crypto markets amid thin weekend liquidity. Policy uncertainty also rose after reports that Coinbase withdrew support for the U.S. Senate’s CLARITY Act, dampening institutional appetite. Near-term technicals suggest Bitcoin support at $90,600–$92,000 and resistance between $93,800–$95,000; analysts expect range-bound action around $91,000–$94,000 with a possible deeper pullback toward $88,000–$90,000 if selling intensifies. Short-term odds of BTC hitting $100,000 in January have fallen (Polymarket ~25%), but some forecasters remain bullish longer term, projecting renewed upside into H1 2026 as macro demand, regulatory clarity, and ETF flows resume.
Bearish
The immediate market impact is bearish. A macro-driven risk-off event — U.S. tariff announcements on EU goods — prompted rapid capital rotation into safe havens and widespread deleveraging in crypto, amplified by thin weekend liquidity. Key indicators support a negative near-term outlook: BTC slipped ~2.7%, total market cap fell ~3%, Fear & Greed Index moved toward fear, average RSI across major tokens sits at 35, and liquidations spiked (~$870M). Policy uncertainty from reports about Coinbase and the stalled CLARITY Act further reduces institutional demand. Historically, geopolitically driven risk-off episodes (e.g., trade-war scares or sudden macro shocks) produce similar outcomes: elevated liquidations, greater volatility, and range-bound or downward price action until liquidity and sentiment recover. For traders, expect higher short-term volatility, tighter ranges for BTC ($91k–$94k) with downside risk to $88k–$90k if selling intensifies, and cautious positioning from institutions. Longer term the story remains neutral-to-bullish if macro pressures ease and regulatory clarity/ETF inflows return, but near-term trading should prioritize risk management and watch derivatives flows and liquidity conditions.