Analysis: Market fears of a US-EU trade war cause Bitcoin to drop over 3% in a short period

ChainCatcher news, according to The Block, concerns about a potential trade war between the United States and the European Union are expected to further impact already fragile market sentiment. Bitcoin, Ethereum, and the entire crypto market plunged in the early hours, with Bitcoin briefly dropping below $92,000 and falling more than 3% in a short period. In the past four hours, long liquidations have exceeded $750 million. Analysts attribute this plunge to market concerns over the prospects of a US-EU tariff war.

Presto Research analyst Min Jung stated: "The crypto market remains weak compared to other asset classes. Although concerns about a US-EU trade war have had the greatest impact on market sentiment, other risk assets, including the Korea Composite Stock Price Index (KOSPI), have remained flat or even risen. This indicates that there are clear internal weaknesses within the crypto market, and investors are more inclined to allocate to other risk assets. Against the backdrop of most markets rising, crypto assets are still the underperforming category."