- Trade tensions affect Bitcoin; privacy tokens show stability.
- BTC falls 3-3.6%, ETH down by 2.96%.
- US-EU disputes spark significant market risks.
Trade tensions escalate between the US and EU as tariffs on European imports announced by US President Donald Trump impact cryptocurrency markets, with Bitcoin prices dropping sharply.
The trade tensions fueled fear and uncertainty in crypto markets, notably affecting Bitcoin and altcoins, revealing market sensitivity to geopolitical events with no confirmed separation of privacy tokens.
US-EU trade tensions have led to a downturn in Bitcoin’s market value, as tariffs imposed by the US impact European allies. President Donald Trump announced tariffs starting February 1.
The new tariffs affect imports from several European countries including Denmark, France, and Germany. French President Emmanuel Macron urged for EU’s “anti-coercion instrument” activation, responding with potential €93 billion tariffs.
The tensions contributed to a drop in Bitcoin prices, with Bitcoin trading below $93,000. The crypto market experienced a broader reaction as traders reduced exposure amid heightened uncertainty. Nischal Shetty of WazirX pointed out the impact of macro uncertainties on the crypto market. In the words of Nischal Shetty, Founder, WazirX, “Over the past 24 hours, the crypto market has reflected a clear shift in global risk sentiment, driven by rising macro uncertainty and renewed trade-related tensions. Bitcoin and major altcoins faced selling pressure as traders reduced exposure amid heightened uncertainty” (source).
Andri Fauzan Adziima highlighted Bitcoin’s continued behavior as a high-beta asset under macro pressures.
While there is speculation around privacy tokens decoupling from Bitcoin, no concrete evidence supports this claim presently. Market trends offer no new data confirming such a change in behavior.
No privacy token founders or key opinion leaders have commented on the matter, leaving uncertainty around the potential for future market decoupling. Historical trends usually show high-beta assets like Bitcoin affected during macroeconomic turmoils.
