Crypto Market Loses $100B in Hours Amid Tariff Fears and Bitcoin Downturn

The cryptocurrency market has lost over $100 billion in value in the span of 24 hours as Bitcoin and major altcoins dropped sharply on Monday. The downturn came amid renewed U.S.-EU trade tensions, as President Donald Trump threatened tariffs on eight European nations. The sell-off led to more than $800 million in liquidations across leveraged positions.

Bitcoin fell from around $95,500 to below $92,000 within hours, marking a 3.79% decline. Ethereum, Solana, and Cardano also followed BTC’s downward trajectory. The largest single liquidation reached $25.83 million in the BTCUSD pair on Hyperliquid.

The Fear and Greed Index dropped from 61 to 44 in a single day, signaling a shift from optimism to caution among traders.

Why Did This Happen?

The primary trigger for the market decline was the resurfacing of U.S.-EU trade tensions. President Trump announced a 10% tariff on goods from eight European countries unless the U.S. is allowed to take control of Greenland. The EU is considering retaliatory measures, including imposing up to €93 billion ($101 billion) in tariffs on U.S. goods.

The uncertainty caused a risk-off environment, with leveraged traders and algorithmic funds exacerbating the sell-off. Nearly 90.5% of liquidations were long positions, suggesting excessive bullish exposure.

How Did Markets React?

The correction affected the broader risk-asset landscape. U.S. stock index futures fell 1%, while gold and silver surged to all-time highs. The cryptocurrency market, however, underperformed, with the Korea Composite Stock Price Index (KOSPI) remaining stable or rising during the same period according to market data.

The market capitalization of the crypto space dropped by 2.8% to $3.26 trillion in 24 hours. This represents a $111 billion loss since last Thursday.

What Are Analysts Watching Next?

Analysts highlight the vulnerability of the crypto market compared to traditional assets. "While U.S.-EU trade war concerns have had the largest impact on sentiment," said Min Jung of Presto Research.

The market may continue to face downward pressure if the trade dispute escalates or if regulatory uncertainties persist. Bitcoin is now testing key support levels below its 50-week moving average, with potential further losses to the $67,000–$74,000 range.

Investors are also watching for clarity on the U.S. crypto market structure bill, which has stalled in Congress after Coinbase withdrew support. This regulatory uncertainty adds to the broader unease in the market.

The broader economic environment is also under scrutiny. TSMC, one of the world’s largest chipmakers, is projecting nearly 30% sales growth in 2026, driven by AI demand and a non-AI recovery. However, J.B. Hunt reported weaker-than-expected revenue in the fourth quarter, highlighting the uneven macroeconomic backdrop.

The Trump family’s involvement in crypto ventures, including the Official TRUMP meme coin, continues to draw regulatory scrutiny and political criticism. Despite a $10 billion peak for the token, it now trades just below $5, having lost 93% of its all-time high.

Key Takeaways

The crypto market is highly sensitive to geopolitical and regulatory developments. The U.S.-EU trade tensions acted as a catalyst for a broader risk-off environment, amplifying the impact of leveraged positions and algorithmic selling.

Investors are now focused on the path of U.S. policy, trade negotiations, and regulatory clarity. Until these uncertainties are addressed, the market remains vulnerable to sharp corrections.

For now, Bitcoin traders are closely monitoring the $90,000 level, while broader sentiment indicators like the Fear and Greed Index remain in a cautious range.