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Mohammedia – Bitcoin prices fell sharply on Monday as renewed geopolitical tensions between the United States and the European Union unsettled global markets and triggered heavy losses across the cryptocurrency sector.
Bitcoin dropped about 3% during early Asian trading, sliding from around $95,400 to as low as $92,284 before stabilizing slightly above $92,600 later in the session.
The decline came amid broader losses across major digital assets, with Ethereum, BNB, XRP, and Solana all recording notable drops. As a result, the total value of the global crypto market fell by nearly 3% to approximately $3.22 trillion.
The price fall was accompanied by a surge in liquidations, a process where leveraged trading positions are automatically closed when losses exceed certain limits.
Data from CoinGlass showed that more than $864 million worth of crypto positions were liquidated over the past 12 hours, with around $783 million coming from traders who had bet on prices rising.
Such forced selling tends to amplify price movements, accelerating declines during periods of heightened volatility.
Market sentiment weakened after US President Donald Trump threatened several European countries with new tariffs unless they agreed to sell Greenland to the United States.
According to statements made earlier, tariffs would start at 10% from February 1 and rise to 25% by June if no agreement is reached.
European leaders have rejected the demand, describing it as blackmail, while officials in Brussels have begun preparing retaliatory measures, including potential duties on €93 billion worth of American goods.
The geopolitical dispute added pressure to an already fragile market environment. Investor confidence had been affected by delays in US crypto regulation, after the Senate Banking Committee postponed its markup hearing for the Digital Asset Market Clarity Act.
The delay followed the withdrawal of support from several major industry players, including Coinbase, leaving the timeline for the legislation uncertain.
Additional strain came from renewed outflows in US spot Bitcoin exchange-traded funds. Data from SoSoValue showed that the 12 spot Bitcoin ETFs recorded net outflows of nearly $395 million on Friday, reversing a four-day period during which the funds had attracted about $1.8 billion in new inflows.
Technical indicators reflect the shift in market momentum. Bitcoin is trading near a long-standing support level that has held since late November and aligns with its 50-day moving average.
At the same time, commonly watched momentum indicators such as the MACD and the RSI point to weakening upward pressure, suggesting that recent buying strength has eased.
Together, the developments highlight how sensitive the cryptocurrency market remains to global political tensions, regulatory uncertainty, and shifts in investor risk appetite.
Read also: XRP Holds $2.05 Support as Binance Whale Inflows Hit Lowest Level Since 2021
