Bitcoin Faces Selling Pressure Amid Renewed Trade War Fears

Geopolitical instability has returned as a primary driver of market sentiment, creating a challenging environment for digital assets. Unlike traditional safe havens such as gold, which typically benefit from uncertainty, Bitcoin is currently experiencing significant selling pressure. This downturn is largely attributed to an escalating trade dispute between the United States and the European Union, prompting investors to retreat from risk-oriented holdings. The key question for traders is whether the current price level near $93,183 can provide a stable foundation against this macroeconomic headwind.

A closer look at investor activity reveals a complex picture. On one hand, the market for spot Bitcoin ETFs recorded weekly inflows exceeding $1.4 billion, suggesting sustained institutional interest. However, this trend reversed sharply by the week's end, with notable outflows from funds including Grayscale and Bitwise. Meanwhile, real-world adoption continues to advance despite price weakness. The US burger chain Steak 'n Shake announced plans to build a strategic Bitcoin reserve, and mortgage provider Newrez intends to incorporate crypto assets into its credit assessments.

The Trigger: A New Round of Tariffs

The immediate cause of the market's anxiety is a recent announcement from US President Donald Trump. New tariffs targeting eight European nations—including Germany, France, and the United Kingdom—have been proposed. This conflict, reignited by the Greenland question, has fostered a broad "risk-off" mood across global financial markets. The planned punitive duties, which are scheduled to rise to 25% by June 2026, coupled with the EU's threat of billion-dollar countermeasures, have severely dampened investor sentiment.

Bitcoin has been unable to decouple from this negative backdrop. Contrary to periods where it has been touted as "digital gold," the cryptocurrency is currently displaying a high correlation with traditional risk assets. Its perceived lack of defensive qualities in this specific geopolitical climate has led many market participants to unwind their positions.

Should investors sell immediately? Or is it worth buying Bitcoin?

On-Chain Data and Technical Indicators Flash Caution

Network analytics provide further reasons for vigilance. Larger investor cohorts have recently moved holdings to exchanges, a move often interpreted as preparatory for selling. Furthermore, data indicates that short-term holders are, on average, sitting on unrealized losses. If prices do not recover into a profit zone swiftly, the likelihood increases that this group will sell to prevent further losses. Technical analysis also points to potential downside risk, with signals like a "Bearish Kumo Twist" appearing on the weekly chart.

Liquidation Cascade and Price Context

The selling pressure had a direct and measurable impact on market structure. Across the cryptocurrency sector, more than $815 million in positions were forcibly liquidated within a 24-hour window, with the majority being bullish long bets. From a technical perspective, Bitcoin remains within a consolidation phase that has persisted for nearly two months. The asset now trades approximately 25% below its 52-week high.

What Lies Ahead for Traders

The immediate focus shifts to a week packed with pivotal events. Following the US market holiday on Tuesday, the reopening of trading will coincide with the release of key US GDP figures. Perhaps most critically, an anticipated Supreme Court ruling on the legality of the Trump-era tariffs is pending. Should these developments fail to ease current tensions, Bitcoin may be poised to test lower support levels in the $80,000 to $88,000 range.