Bitcoin along with other leading cryptocurrencies experienced a sharp downturn as escalating tariff disputes between the US and EU triggered a massive $100 billion market value loss, accompanied by intense long position liquidations. This sell-off pushed BTC toward crucial support zones.
The crypto market capitalization plunged roughly $100 billion within hours amid rising trade tensions between the United States and European Union. On-chain analytics revealed synchronized large-scale Bitcoin sales executed by whales, exchanges, and market makers, which in turn sparked cascading liquidations of leveraged long positions.
Currently, Bitcoin is hovering near important Fibonacci retracement levels and trendline supports. Analysts remain divided on whether this marks the beginning of a deeper correction reminiscent of 2022’s steep decline or if it will lead to a short-term rebound targeting around $98,000 to $100,000.
Over the weekend, geopolitical conflicts fueled widespread selling pressure across digital assets. Market data showed that Bitcoin lost significant ground while total cryptocurrency market cap shrank dramatically in just a few hours due to these external shocks.
A blockchain analytics firm reported that major holders—including institutional investors and exchange platforms—engaged in coordinated offloading of substantial Bitcoin holdings during this period. This collective selling intensified downward momentum through large-scale liquidation events affecting leveraged traders.
Trading volumes surged as prices dropped sharply across multiple top cryptocurrencies. Despite recent volatility spikes causing temporary dips below key technical levels, Bitcoin’s weekly performance remained slightly positive according to price tracking services.
The sell-off was largely attributed by experts to heightened risk aversion following tariff announcements from the US government targeting Europe coupled with retaliatory plans from EU officials. These developments coincided with political remarks concerning Greenland and led futures tied to US stock indices lower — dragging down risk-sensitive assets including cryptocurrencies via forced deleveraging moves.
Market observers emphasized that this decline reflected broader macroeconomic uncertainties rather than inherent weaknesses specific to crypto markets alone; highly leveraged trading positions amplified losses amid geopolitical tensions unfolding globally.
Technical analysis pointed out potential reversal signals near the 38.2% Fibonacci retracement level after an unsuccessful attempt at breaking above it recently—a pattern somewhat reminiscent of last year when BTC tested similar support before plunging alongside FTX collapse and Federal Reserve tightening cycles.
Diverging views emerged among analysts who highlighted differences in current economic conditions such as ongoing monetary policy shifts combined with persistent high volatility within crypto markets today versus prior years’ environments. The liquidation cascade suggested excessive leverage played a critical role while exchanges and market makers appeared prepared for downside moves based on observed trading behaviors.
As Bitcoin approaches these pivotal support thresholds once again, traders closely watch for signs indicating either further declines or potential recovery rallies according to prevailing technical indicators analyzed by experts in the field.