Analysis: Market concerns about a potential trade war between the US and Europe caused Bitcoin to briefly drop by over 3%.

According to Mars Finance, on January 19th, The Block reported that concerns about a potential trade war between the US and the EU would further impact already fragile market sentiment. Bitcoin, Ethereum, and the entire crypto market plummeted in the early hours of the morning, with Bitcoin briefly falling below $92,000, a drop of over 3%. Over $750 million in long positions were liquidated in the past four hours. Analysts attributed the plunge to market concerns about the prospects of a US-EU tariff war. Min Jung, a researcher at Presto Research, stated, "The crypto market remains weak compared to other asset classes. While 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 performed flat or even risen. This indicates that the crypto market has significant inherent weaknesses, and investors are more inclined to allocate to other risk assets. Against the backdrop of most markets rising, crypto assets remain among the underperforming categories."