Bitcoin Dips Below USD $92,000 as Trade Tensions Flare 

Bitcoin saw sharp downside volatility overnight as global markets shifted decisively into a risk-off posture, following renewed trade-war rhetoric between the United States and Europe.

The price fell around 3.6% in a matter of hours, sliding from roughly USD $95,450 to below USD $92,000. The move triggered a rapid wave of forced selling across derivatives markets, with reports suggesting more than USD $750 million of long positions were liquidated in just four hours. Total 24-hour liquidations pushed beyond USD $860 million, according to Coinglass data.

Bitcoin later stabilised modestly around USD $92,580, though price action remains fragile as traders reprice macro risk.

While crypto and equity futures weakened, investors rotated aggressively into traditional safe-haven assets:

• Gold surged to a new all-time high
• Silver climbed above USD $93/oz, also a record high

This divergence highlights a familiar pattern. When geopolitical risk spikes abruptly, high-beta assets such as crypto are often sold first, while gold and silver attract defensive flows.

Volatility intensified after U.S. President Donald Trump announced plans to impose 10% tariffs from February 1 on imports from several European countries, with a stated path to 25% by June should negotiations fail. Countries referenced included Denmark, Sweden, France, Germany, the Netherlands and Finland, with the UK and Norway also flagged as potential targets.

In response, French President Emmanuel Macron urged the EU to consider activating its anti-coercion instrument, often dubbed the bloc’s “trade bazooka, a mechanism that could restrict U.S. access to European markets. EU officials were also reported to be weighing €93 billion in previously delayed retaliatory measures.

Market commentary reinforced a key theme: in the short term, Bitcoin continues to trade like a high-beta macro asset. Sudden spikes in geopolitical uncertainty can therefore translate into rapid drawdowns as institutions and traders reduce risk.

Near-term direction is likely to remain sensitive to:

• U.S.–EU trade negotiation headlines and any confirmed tariff timelines
• Inflation expectations and liquidity conditions
• Derivatives positioning, including open interest and liquidation clusters

In environments like this, markets can remain unsettled until policy direction becomes clearer—which can mean sharp moves in either direction.