The European Union revealed that it has plans to take strong steps against the US in reaction to the new tariffs forced by President Trump, resulting in a devastating crypto market crash, setting off mass liquidations.
The market has faced declination, yet another setback because of the current trade tensions between the U.S. and the European Union. The price of Bitcoin witnessed an unexpected drop in the early trading hours of Monday, leading to liquidations of more than $850 million.
This came as U.S. stock markets were shut at the time of the recent public holiday in the country. The price of BTC dropped from about $95,000 to around $91,000. This changed the gains it had witnessed in the latest weeks, where it peaked at about $97,000.
The Position of Altcoins
Altcoins also came after the lead of the coin as the overall crypto market cap was struck by 3%. It is noteworthy that the market has lost more than $110 billion in value since January 15.
This was followed by the announcement from Trump that the U.S. would impose a 10% tariff on goods from mega EU countries from February 1. He also frightened a 25% surge in the policy from June 1 if they do not attain a deal on the purchase of Greenland.
At the same time, this was not affectionately received by these countries, as they now intend to make a retaliatory move. Adding more, the U.S. government is still waiting for the Supreme Court on whether these Trump tariffs are legal in the first place, as sentiment carries on to diminish in the market.
The crypto market drop initiated in full swing as indications from Europe reveal a retaliatory response to the US threat. As reported by Reuters, EU ambassadors attained a deal late Sunday to halt Trump from imposing the tariffs on the countries.
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