Bitcoin prices declined sharply as global markets reacted to renewed trade war threats between the United States and Europe, triggering a shift toward traditional safe-haven assets. The largest cryptocurrency fell nearly 3.6% within hours, dropping from around $95,450 to below $92,000, before stabilizing slightly above $92,500.
The sudden move sparked heavy liquidations, with more than $750 million in long positions wiped out in just four hours and total daily liquidations exceeding $860 million. The price drop reflects a broader risk-off sentiment, as investors reassessed exposure to volatile assets amid rising geopolitical uncertainty.\
In contrast, gold futures surged to record highs, climbing above $4,660 per ounce, while silver futures crossed $93 per ounce for the first time. The divergence highlights a growing decoupling between digital assets and traditional safe havens during periods of macroeconomic stress.
The market reaction followed announcements of new US trade tariffs on eight European countries, with the threat of further escalation if negotiations fail. European leaders responded by signaling potential retaliation using powerful trade defense measures, intensifying fears of a prolonged economic standoff.
As uncertainty grows, bitcoin is behaving more like a high-risk technology asset, vulnerable to sudden shifts in sentiment. While short-term volatility remains elevated, investors are closely watching whether prolonged trade tensions will continue to pressure crypto markets or eventually drive demand for alternative stores of value.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.