Bitcoin Drops Below $92,000 as Tariff Fears Trigger Crypto Selloff

Bitcoin and the broader cryptocurrency market faced sharp losses on Monday as rising geopolitical tensions pushed investors away from risky assets. The decline followed fresh tariff threats from U.S. President Donald Trump, reigniting fears of a global trade conflict and sending shockwaves across financial markets.

Bitcoin dropped as much as 3.6% during Asian trading hours, briefly slipping below the closely watched $92,000 level. Other major cryptocurrencies fell even harder, with Ether losing nearly 5% and Solana plunging close to 9%. The sudden selloff erased roughly $100 billion from the total crypto market value, according to industry data.

The downturn highlights how sensitive digital assets remain to global political and economic developments, especially when investors shift toward safer investments.

What Triggered the Crypto Market Decline?

The selloff was sparked by comments made by President Trump over the weekend. He said the United States would impose a 10% tariff on goods from eight European countries starting February 1, with the rate rising to 25% in June unless a deal is reached involving the “purchase of Greenland.”

The remarks immediately rattled markets. European leaders strongly criticized the proposal, and reports suggest the European Union is now preparing retaliatory tariffs worth up to €93 billion ($110 billion) against the U.S.

As trading opened on Monday, U.S. stock index futures fell, European equities weakened, and investors rushed into traditional safe assets. Gold and silver surged to record highs, signaling a clear move toward safety.

Cryptocurrencies, which often behave like high-risk assets during uncertain times, failed to attract haven demand.

Bitcoin Breaks Key Support Levels

Bitcoin’s fall below $94,500, a level many traders viewed as critical support, raised concerns about deeper losses. The price hovered near $92,900 in early U.S. trading, down roughly 2.5% over 24 hours.

If Bitcoin fails to hold above the $90,000 mark, analysts warn it could slide back into a wide trading range between $85,000 and $94,500, where it spent much of mid-November.

This breakdown is particularly important because Bitcoin had recently shown signs of strength. Earlier this month, the price climbed close to $98,000, supported by strong inflows into U.S.-listed Bitcoin exchange-traded funds (ETFs).

That rally is now under pressure as global uncertainty dominates investor sentiment.

Altcoins Hit Even Harder

While Bitcoin led the market lower, alternative cryptocurrencies suffered steeper losses.

• Ether (ETH) fell nearly 5% in 24 hours
• Solana (SOL) dropped more than 8%
• Many decentralized finance and layer-1 tokens lost over 10%

The broader CoinDesk 80 Index, which tracks a wide range of cryptocurrencies, declined more than 4%. However, it performed slightly better than Bitcoin-focused indexes, suggesting traders may be rotating away from large positions rather than exiting crypto entirely.

Heavy Liquidations Add to Selling Pressure

One of the biggest drivers of the sharp move was forced selling in leveraged markets.

In the past 24 hours, roughly $790–$815 million worth of bullish crypto bets were liquidated, meaning traders were forced to sell when prices fell too far. About $231 million of those losses were tied to Bitcoin alone.

As prices dropped, many traders did not have enough funds to maintain their positions, accelerating the selloff. This kind of forced liquidation often leads to fast and sudden declines, even when there is no major change in long-term fundamentals.

Open interest, a measure of active futures contracts, fell across most major cryptocurrencies, signaling reduced risk-taking and capital outflows.

Why Crypto Didn’t Act Like a Safe Haven

Some investors still hope Bitcoin will act as “digital gold” during times of crisis. This episode suggests that narrative remains unproven.

While gold and silver rallied sharply to record highs, Bitcoin moved in the opposite direction. According to market analysts, this shows the current decline is not specific to crypto, but part of a broader “risk-off” shift.

Richard Galvin, co-founder of hedge fund DACM, said the earlier Bitcoin rally was largely a rebound from oversold conditions after heavy selling late last year. The return of tariff fears has now halted that recovery.

In simple terms, investors are choosing safety over growth, and cryptocurrencies are still seen as risky assets during global uncertainty.

What Traders Are Watching Next

Market participants are now focused on a few key levels and signals:

• $90,000 for Bitcoin: If this level breaks, further downside could follow
• Institutional demand: ETF inflows may help cushion losses
• Volatility expectations: Despite the selloff, expected price swings remain relatively calm, suggesting traders do not foresee extreme moves yet

Interestingly, options markets show more demand for protection against further losses than for bets on upside, reflecting cautious sentiment.

A Fragile Start to the Year for Crypto

The latest decline marks the first major crypto downturn of the year, interrupting what had been a promising start to January.

After a difficult end to 2025, cryptocurrencies were beginning to recover, supported by institutional inflows and reduced selling pressure. However, geopolitical tensions and trade risks have once again taken center stage.

As long as tariff threats dominate headlines, crypto markets may remain volatile and vulnerable to sudden moves.

Analysis: What This Means for Investors

This selloff offers three important lessons for crypto investors:

First, Bitcoin is still tied to global risk sentiment. Despite its long-term appeal, it behaves more like a high-growth asset than a safe store of value during political shocks.

Second, leverage amplifies market moves. The scale of liquidations shows how quickly prices can fall when too many traders are positioned on one side of the market.

Third, institutional support matters, but it has limits. ETF inflows helped push Bitcoin higher earlier this month, but they were not enough to offset a global flight to safety.

In the near term, Bitcoin’s ability to hold above $90,000 will be critical. A break below that level could invite more selling, while stability could encourage cautious buyers to return.

For long-term investors, this episode reinforces the importance of patience and risk management. For short-term traders, it’s a reminder that headlines, not just charts, can move markets quickly.

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