Analysis: Market Concerned About US-EU Trade War, Bitcoin Temporarily Drops Over 3%

BlockBeats News, January 19th. According to The Block, due to market concerns about a potential trade war between the United States and the European Union, it will further impact an already fragile market sentiment. Bitcoin, Ethereum, and the entire crypto market experienced a sharp downturn in the early morning, with Bitcoin dropping below $92,000 at one point, plummeting over 3% in a short period. The long liquidation amount in the past 4 hours has exceeded $750 million. Analysts attribute this crash to market concerns about the prospect of a US-EU tariff war.

On January 19th, several EU countries are considering imposing tariffs on $93 billion worth of US goods imported into Europe or restricting US companies' access to the EU market in retaliation for US President Trump's imposition of tariffs on 8 European countries in pursuit of acquiring Greenland. On the 17th, Trump announced on social media that starting from February 1st, a 10% tariff will be imposed on US-bound goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, and the tariff rate will increase to 25% from June 1st until an agreement is reached on the US's "full and thorough purchase of Greenland."

Presto Researcher Min Jung stated: "Compared to other asset classes, the crypto market still appears weak. Although concerns about the US-EU trade war have the greatest impact on market sentiment, other risk assets, including the Korea Composite Stock Price Index (KOSPI), have remained stable or even risen. This indicates a clear inherent weakness in the crypto market, as investors tend to allocate to other risk assets. Against the backdrop of a rising market in most areas, crypto assets still lag behind."