According to a ChainCatcher report citing The Block, concerns over a potential trade war between the United States and the European Union have further shaken an already fragile market sentiment. In the early hours, Bitcoin, Ethereum, and the broader cryptocurrency market experienced a sharp plunge, with Bitcoin briefly dropping below $92,000, a short-term decline of over 3%. Long positions have seen over $750 million in liquidations in the past four hours. Analysts attribute this crash to growing fears of a U.S.-EU tariff conflict. Min Jung, a researcher at Presto Research, said, "The crypto market remains relatively weak compared to other asset classes. Although concerns about a U.S.-EU trade war have had the most significant impact on market sentiment, other risk assets, including the Korea Composite Stock Price Index (KOSPI), have remained flat or even risen. This suggests that the crypto market has clear internal weaknesses, and investors are more inclined to allocate capital to other risk assets. In a context where most markets are rising, crypto assets continue to be the underperforming category."
Bitcoin Falls More Than 3% Amid Fears of a US-EU Trade War
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Summary
Bitcoin fell over 3% as value investing in crypto faces renewed pressure from trade war fears between the US and EU. The price briefly dipped below $92,000, with over $750 million in long positions liquidated in four hours. Analysts point to rising geopolitical risks as the main driver. Min Jung from Presto Research noted that crypto’s risk-to-reward ratio remains less favorable compared to traditional assets, as equities like the KOSPI index held steady.
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