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Bitcoin fell sharply on Monday as renewed US-EU trade tensions triggered a broad risk-off move across global markets.
The price of Bitcoin dropped 3.1% from $95,385 to $92,415, according to market data.
The decline wiped out bullish positions that had anticipated a continuation of last week’s upward momentum.
More than $865 million in leveraged crypto positions were liquidated during the early Asian trading session.
Analysts said roughly 90% of liquidations came from traders betting on higher prices.
Market observers noted that the sell-off was driven by global macroeconomic concerns rather than crypto-specific issues.
US stock and bond markets remained closed for the Martin Luther King Jr. public holiday, reducing overall liquidity.
The downturn coincided with world leaders gathering in Davos for the World Economic Forum.
Altcoins also recorded sharp losses, dragging the total crypto market capitalisation down by 2.8% to $3.26 trillion.
The wider crypto market has shed more than $111 billion in value since last Thursday.
Analysts linked the sell-off to escalating geopolitical tensions between the United States and the European Union.
US President Donald Trump threatened to impose new tariffs on Greenland and several EU allies over the weekend.
Trump said eight countries would face 10% export tariffs for opposing US control of Greenland.
“As a result, the crypto markets are reacting to the return of the US-EU trade war and to concerns about Trump’s new proposed tariffs,”
Lai Yuen said.
US Treasury Secretary Scott Bessent echoed Trump’s position, warning that competition in the Arctic region is intensifying.
Prediction markets showed rising expectations that Trump could formally pursue acquiring Greenland before July.
“The recent pullback in Bitcoin is being driven less by crypto-specific fundamentals and more by a broader shift in global risk sentiment,”
Ryan Lee said.
Lee added that heightened macro uncertainty and profit-taking have pushed investors into a more cautious stance.
Analysts expect Bitcoin to trade within a narrow range for the remainder of January.
Technical support is forecast to form around the mid-$85,000 level in the near term.
At the time of reporting, Bitcoin price was $92,579.89.