Bitcoin dropped below $92,500 amid rising fears of a trade war between the U.S. and the EU. The cryptocurrency fell from $95,500 to $92,474, marking a 3% decline within a few hours. This downturn also affected major cryptocurrencies like Ethereum, XRP, and Solana, leading to over $750 million in liquidations of long positions. Analysts attribute the market's fragility to ongoing concerns about U.S.-EU relations, compounded by delays in U.S. regulatory measures for the crypto sector. Tensions escalated after President Trump threatened to impose tariffs on imports from several NATO allies unless Denmark agreed to sell Greenland to the U.S. European leaders condemned these demands as "blackmail," warning of potential retaliatory measures against American companies. The geopolitical uncertainty has added to the already weak sentiment in the crypto market, which was further strained by stalled legislation on U.S. crypto market structure. Min Jung from Presto Research noted that while external factors like trade tensions are significant, the crypto market's issues were already apparent, as traders shifted their focus to more stable assets. Analysts like Rachael Lucas highlighted that Bitcoin had been consolidating since its all-time high of nearly $126,000 in October 2025. Recent algorithmic selling was triggered when Bitcoin fell below its 50-week moving average. Lucas warned that if these macroeconomic pressures continue, Bitcoin could drop to the $67,000 to $74,000 range, though she emphasized that the current market dynamics differ from previous downturns due to greater maturity and positive regulatory signals within the industry.