Bitcoin hits $ 92,000 level amid EU-US conflict

Bitcoin BTC $92,441.19 Mezo Wrapped BTC -1.93% Market capitalization $54.05 million VOL. 24 hours $1.4 billion dropped below $ 92,000 amid a general market decline and a rapid increase in position liquidations following the escalation of the trade dispute between the United States and the European Union, which caused cryptocurrency assets to fall to six-day lows. As of the morning of trading in Asia, the price of BTC was below $ 92,500, while other major altcoins also showed a significant decline.

According to CoinGlass, liquidation volumes exceeded $ 870 million over the past 24 hours, with traders with long positions suffering the majority of losses — approximately $ 790 million. The total number of liquidated trading participants is close to 250,000.

Experts attribute such volatility to recent geopolitical events: US President Donald Trump said that the country’s national security depends on the «full acquisition» of Greenland, which belongs to Denmark. In response, eight EU countries sent a small contingent of troops to the island for a reconnaissance mission. The US imposed new tariffs of 10% against these eight countries, effective February 1. The EU convened an emergency meeting, and French President Emmanuel Macron called for the use of the so-called «trade bazooka», which had never been used before and could restrict the access of American goods to European markets.

On this day, US spot markets remained closed due to the MLK Day holiday, but in Asia, indices and currency pairs, including the US dollar against the yen and the Swiss franc, continued to decline, as did Nasdaq futures, which fell by up to 1.3%. BTC’s decline occurred at the same time as gold once again broke through historic highs, demonstrating the outflow of capital into traditional assets.

Such a market reaction shows that cryptocurrencies remain sensitive to global political and economic risks, and large-scale liquidations may exacerbate the short-term downward trend in Bitcoin’s price.