Crypto Market Crashes Due to US-EU Tariff Tensions as Bitcoin Slides

The crypto market crashes due to US-EU tariff tensions accelerated on Monday as fresh signals from Europe point toward retaliatory trade measures against the United States. Heightened geopolitical and economic uncertainty sparked a sharp sell-off across digital assets, with Bitcoin and major altcoins recording notable losses amid thin market liquidity.

Bitcoin fell abruptly from the $95,000 region to lows near $92,000, erasing much of its recent upside momentum. The move triggered more than $850 million in liquidations across crypto derivatives markets, highlighting the fragility of sentiment as traders rushed to de-risk. The broader crypto market followed suit, with total market capitalization dropping around 3% and more than $110 billion wiped out since last Thursday.

Trump Threatens Tariffs as Europe Increases Troops in Greenland

The downturn coincided with U.S. equity markets remaining closed for a public holiday, a factor that likely amplified volatility. With fewer participants active, price swings became more aggressive as negative headlines dominated global risk markets.

Crypto Market Crashes Due to US-EU Tariff Tensions Following Trump Tariff Threat

The latest leg of the crypto market crash stems from President Donald Trump’s announcement of new trade measures targeting the European Union. The U.S. plans to impose a 10% tariff on goods from major EU economies starting February 1, with the threat of an increase to 25% by June 1 if negotiations fail. These comments reignited fears of a prolonged transatlantic trade conflict, pushing investors away from risk assets.

Altcoins mirrored Bitcoin’s decline, as uncertainty spread across the market. Investors are also watching closely as the legality of the proposed tariffs remains under review by the U.S. Supreme Court, adding another layer of unpredictability to the macro backdrop.

US-EU Tariff Tensions as Europe Weighs Retaliation

Pressure intensified after reports that EU officials are preparing a strong response. According to Reuters, EU ambassadors reached an agreement late Sunday to counter the U.S. measures, with discussions set to continue at an emergency summit in Brussels later this week.

Among the options under consideration is a €93 billion, or roughly $107.7 billion, tariff package targeting U.S. imports. These measures could come into force as early as February 6, following the expiration of a previous suspension period. European leaders are also weighing the use of the Anti-Coercion Instrument, which could restrict access to banking and trade services.

While the crypto market has previously shown resilience during geopolitical shocks, the renewed threat of a trade war appears to be weighing heavily on sentiment. As negotiations unfold, traders remain cautious, bracing for continued volatility driven by macroeconomic and political developments.

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