Bitcoin has extended its decline for a seventh consecutive session, falling as low as $88,861 on Wednesday, its longest losing streak since November 2024, amid rising U.S.-EU trade tensions that have unsettled global risk markets.
The world’s largest cryptocurrency dropped more than 2% intraday, briefly touching $87,794 before staging a modest rebound. At the time of writing, BTC was trading around $88,764, nearly 9.6% below its $98,000 peak earlier this year.
The sell-off followed comments from U.S. President Donald Trump, who said the United States would introduce tariffs on eight European countries, including France, Germany, and the U.K., as part of his controversial bid to acquire Greenland. The announcement sparked a broad risk-off move, wiping nearly $150 billion off the global cryptocurrency market within 24 hours.
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Major altcoins were also not spared. Ethereum slipped below the $3,000 mark after falling about 6%, while XRP, Solana, TRON, and Monero posted losses ranging from 4% to as much as 18%. The sharp price decline also triggered widespread liquidations. According to CoinGlass, 183,050 traders were liquidated in the past 24 hours, with total liquidations reaching $1.02 billion. About 90% of these were long positions, amounting to roughly $928.45 million, as bullish bets on a rebound failed to materialize.
Over the past three days, Bitcoin has dropped significantly below $88,000 after it started the new year on a bullish momentum, reaching as high as $97,888. Amidst BTC price rally, sentiment showed signs of improvement, with the Crypto Fear & Greed Index moving into the neutral-to-greed zone for the first time in months.
The index, which tracks overall investor sentiment, reportedly registered a “greed” score following weeks of fear and extreme fear. It reached a reading of 61, reflecting a notable shift in mood after prolonged caution. Meanwhile, the Crypto Fear and Greed Index has currently slid to 32, firmly in the “fear” zone, signaling growing caution among investors.
Adding to the bearish outlook, veteran trader Peter Brandt recently warned that Bitcoin could fall to the $58,000–$62,000 range within the next two weeks. Paul Howard, Director at Wincent, noted that the renewed tariff rhetoric has pressured all risk assets.
“We have seen cryptocurrencies largely follow this trend and can expect that to continue, with European equities trading almost 2% down,” Howard said. “Volatility is back.”
Jeff Mei, COO at BTSE, added that Trump’s tariff threats over Greenland were poorly received by markets. However, he pointed out that many traders still believe the U.S president could soften his stance, as he has done in the past, to avoid severe global market disruptions. Mei further noted that investors are closely watching Europe’s response and whether tensions will escalate, adding that the chances of Europe conceding to Trump’s demands appear slim.
Institutional selling has further weighed on Bitcoin. Spot Bitcoin ETFs recorded nearly $874.4 million in outflows over the past two days, led by Fidelity with $357.3 million, followed by Grayscale, Bitwise, and ARK Invest. These withdrawals reflect rising institutional caution amid geopolitical uncertainty. As a result, capital has been rotating into traditional safe-haven assets such as gold and silver, both of which recently hit all-time highs.
CryptoQuant contributor Darkfost observed a clear decline in whale transactions, particularly BTC inflows to exchanges. This suggests that large holders are sending significantly less Bitcoin to trading platforms, indicating reduced selling pressure from whales. Despite the ongoing downturn, analysts note that similar pullbacks have occurred in the past, often followed by strong rebounds once key technical conditions aligned.
Outlook
If Bitcoin stabilizes above $88,000, analysts see a potential recovery toward immediate resistance at $89,600, followed by a stronger barrier near $90,000. One bullish scenario suggests that Bitcoin could reclaim the $94,000 zone, break through it with strong momentum, and resume its uptrend toward the $100,000 region. In this case, the recent decline would be viewed as a shakeout rather than a full trend reversal.
However, a more cautious scenario points to a potential fake out near $94,000, followed by another rejection and a breakdown below $90,000. This could lead to a liquidity sweep toward the $88,000 area before the market finds a more sustainable direction. For now, Bitcoin remains under pressure, with traders balancing growing macro risks against signs of technical stabilization.