Crypto Markets Slip as US‑EU Tariff Standoff Fuels Uncertainty
Bitcoin and Ethereum tumble amid fresh tariff threats from Washington, while the broader crypto ecosystem logs its largest weekly outflows in weeks.
Market snapshot
- Total market cap: down roughly 3 % in the last 24 hours, now hovering around $2.29 trillion.
- Bitcoin (BTC): fell from about $67,600 on Sunday evening to $64,400 before a brief bounce to just above $66,000 on Monday morning. The rally proved short‑lived, with the price settling near $64,600 at press time.
- Ethereum (ETH): lost more than 4 % on the day, trading near $1,850.
- Other large caps: most of the top‑10 assets posted losses in the 2‑6 % band. Dogecoin (DOGE) was the relatively best‑performing large‑cap, down only 1.3 % on the day but still down about 7 % for the week.
The sell‑off follows a fresh wave of tariff announcements from U.S. President Donald Trump, reigniting concerns over global trade stability.
Macro backdrop
On Sunday, the European Commission responded to a U.S. Supreme Court ruling that nullified Trump’s emergency tariff measures, stating it would abide by the previous year’s trade agreement with the United States. In retaliation, the White House introduced temporary global tariffs—initially 10 % and potentially rising to 15 % over the weekend. The abrupt policy shift left investors navigating a more volatile trade environment.
U.S. Treasury yields were largely unchanged at the start of the week: the 10‑year yield slipped a fraction of a basis point to 4.077 %, the 30‑year to 4.723 %, and the 2‑year edged up to 3.482 %.
On‑chain and sentiment metrics
- Net realized profit/loss (NRPL): Glassnode data shows the seven‑day average NRPL for recent entrants improving from a daily loss of $1.24 bn on Feb 6 to $0.48 bn today, indicating that investors who bought during the “base formation” phase are still exiting at a loss.
- Fear & Greed Index: fell to 5, deep in the “extreme fear” zone, underscoring the bearish sentiment across crypto markets.
- Upcoming catalyst: Analysts at Keyrock flag Nvidia’s earnings (Feb 25) as a potential market trigger, given equity markets’ sensitivity to AI‑related growth expectations—a factor that historically correlates with Bitcoin’s price action.
Movers, liquidations and ETF flows
| Category | Highlight |
|---|---|
| Top gainers | POL (formerly MATIC) rose ~3.3 %; tokenized gold products Tether Gold and PAX Gold each climbed ~1.4 %. |
| Top losers | Decentralised trading protocol tokens Hyperliquid (‑8.2 %) and Pumpfun (‑≈9 %) led the declines after a tweet hinted at an imminent investigation into a highly profitable crypto business. |
| Liquidations | Approximately 139,000 traders were liquidated in the last 24 hours, wiping out ≈ $503 million. Bitcoin accounted for $231 million, Ethereum $127 million, and other altcoins about $34 million. Long positions represented roughly 85 % of the total loss. |
| ETF activity | Spot Bitcoin ETFs recorded net outflows of $315.9 million for the week ending Feb 20, while Spot Ethereum ETFs saw outflows of $123.4 million (SoSoValue data). |
Analysis
The simultaneous pressure from trade policy uncertainty and deteriorating macro‑economic signals has reignited risk aversion among crypto investors. Bitcoin’s inability to hold above the $66k threshold, despite a fleeting rebound, suggests that the market remains highly sensitive to geopolitical headlines.
On‑chain metrics corroborate the price action: the continued net losses for recent entrants signal that the “base formation” phase is still being eroded, while the surge in liquidations—predominantly on the long side—highlights that leveraged exposure is being trimmed aggressively.
The outflows from spot Bitcoin and Ethereum ETFs further illustrate a shift away from passive exposure, as investors retreat to cash or alternative safe‑haven assets amid heightened fear.
Looking ahead, the crypto market’s trajectory may hinge on two near‑term events:
- Nvidia’s earnings (Feb 25): Positive guidance could lift risk sentiment, whereas a miss may deepen the bearish stance.
- Resolution of the US‑EU tariff dispute: A de‑escalation would remove a major macro‑risk factor, potentially stabilising capital flows back into digital assets.
Key takeaways
- Crypto market cap slipped 3 % to $2.29 trillion as tariff threats reignited risk aversion.
- Bitcoin and Ethereum fell 5 %+, with BTC stabilising around $64.6k after a brief rebound.
- Net realized profit/loss remains negative, indicating continued distress among recent buyers.
- Liquidations exceeded $500 million, with long positions bearing the bulk of the loss.
- Spot BTC and ETH ETFs logged multi‑hundred‑million‑dollar outflows, pointing to a broader pull‑back from passive crypto exposure.
- Future market direction likely tied to Nvidia’s earnings and the evolution of the US‑EU tariff row.
Investors should monitor macro‑policy developments and upcoming corporate earnings closely, as they are poised to shape the risk sentiment that currently governs crypto price action.
Source: https://thedefiant.io/news/markets/crypto-markets-dip-amid-us-eu-dispute-over-tariffs
