Analysis: Market Concerned About US-EU Trade War, Bitcoin Sees Short-Term Drop of Over 3%

January 19 — According to The Block, market fears of a potential U.S.-EU trade war are further weighing on an already fragile market sentiment, triggering a sell-off in crypto markets during early trading. Bitcoin, Ethereum and the broader crypto space tumbled, with Bitcoin briefly falling below $92,000 and marking a short-term drop of more than 3%. Total long positions liquidated over the past four hours exceeded $750 million. Analysts link the downturn to concerns over the prospect of a U.S.-EU tariff war. Presto Research analyst Min Jung noted: “Relative to other asset classes, the crypto market remains vulnerable. While U.S.-EU trade war fears have been the biggest drag on sentiment, other risk assets—including the Korea Composite Stock Price Index (KOSPI)—have held steady or even gained. This signals a distinct inherent vulnerability in crypto markets, as investors are favoring other risk assets for allocations. Amid gains across most sectors, crypto assets continue to lag.”