Crypto Market Loses $110B as EU Plans $108B Retaliatory Tariffs
Crypto market plunges $110B after EU signals $108B retaliatory tariffs vs US. Bitcoin falls $4K as trade tensions escalate and investors pan
Quick overview
- The cryptocurrency market experienced a significant decline due to escalating US-EU trade tensions, resulting in over $850 million in liquidations.
- Bitcoin dropped $4,000 within hours, reversing previous gains and contributing to a total market cap loss of $110 billion.
- The European Union plans a retaliatory tariff package worth $107.7 billion against US imports, further heightening market uncertainty.
- Geopolitical tensions are causing increased volatility in crypto prices, leaving investors on high alert for sudden market shifts.
The cryptocurrency market took a sharp nosedive due to increasing US – EU trade tensions that sent shockwaves of liquidations across the board. Bitcoin plummeted from a high of around $95,000 in early trading on Monday, promptly reversing gains from the week before that saw it touch $97,000. This sudden downturn led to over $850 million in liquidations in a single session, with many altcoins following suit and taking the total crypto market capitalization down by a whoppin 3%.
The market crash coincided with a public holiday in the US, meaning the stock market was closed, which just added to the sense of uncertainty. Analysts are linking the whole shebang directly back to President Trump’s announcement of some new tariffs, which is spooking people with fears of what else might happen to global markets.
- Bitcoin took a hit of $4,000 in the space of just a few hours
- The altcoins all followed suit, going down too
- The total market cap dropped a massive $110 billion in the blink of an eye
https://truthsocial.com/@realDonaldTrump/posts/115911344443637897
EU Plans a $108B Slap Back
The European Union made it clear they’re not going to take the US tariffs lying down, they’re planning a big retaliation package worth €93 billion ($107.7 billion) on US imports starting from February 1. If the trade negotiations fall apart, they might even go up to a 25% increase. EU ambassadors have reportedly reached a consensus to block the tariff tariffs altogether and are calling an emergency summit in Brussels this Thursday to hammer out their retaliatory plans.
JUST IN: $100,000,000,000 wiped out from the crypto market cap in the past 12 hours. pic.twitter.com/Ef3052KlDI
— Watcher.Guru (@WatcherGuru) January 19, 2026
Some of the things they’re looking at include:
- A tariff package worth $107.7 billion targeting US imports
- The Anti-Coercion Instrument (ACI) which would restrict access to banking and trade services for the US
The EU officials are saying that all this is aimed at countering the US coercive policies, while at the same time trying to keep transatlantic relations intact.
The Fear in the Markets and How It’s Affecting Sentiment
The market is getting pretty spooked with all this going on. Previous scares, like the US getting involved in Venezuela, did give investors a bit of a shock, but this time round it looks a whole lot more serious. To make matters worse, some EU countries affected by the tariffs have even gone and deployed troops to Greenland – it’s getting pretty crazy geopolitically!
Analysts are warning that all these tariffs could lead to even more crypto price volatility, which would knock market confidence and transatlantic economic stability for six.
- Investors are on high alert for sudden liquidations
- Geopolitical tensions are having a direct impact on crypto pricing
- There’s a whole lot of uncertainty around the legality of all these new US tariffs
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save