Cryptocurrency Markets in Uncertainty as Bitcoin Prices Drop to Critical Levels Amid Concerns over Tariffs

The tariff tensions between the European Union and US President Donald Trump have been significantly impacting the cryptocurrency markets. Bitcoin recently experienced a 2.5% decline, dropping to around $93,000, while the broader market faces uncertainty. Investor sentiment is heavily skeptical, and risk appetite has noticeably decreased.

Trade War and Cryptocurrency Market Slump: What Could Happen, What Is Happening?

The EU’s preparation of retaliatory tariffs worth 93 billion euros (approximately $110 million) has become a source of pressure in financial markets. This development has not only affected Bitcoin and the wider crypto market but has also caused fluctuations in traditional asset classes. Concerns over tariffs have pushed European stocks lower, and US futures are under similar pressure.

From an investor’s perspective, the short-term outlook remains uncertain. Safe-haven assets like gold and silver reaching record levels are strong indicators of panic selling and risk aversion. Meanwhile, Bitcoin, despite its narrative as a “hard asset,” has lagged due to demand for physical metals rather than digital tokens.

Bitcoin and Altcoins: Beyond Price Drops, What Else Is There?

Bitcoin falling below the support level of $94,500 signals a concerning technical indicator. Currently, the price risks returning to the mid-November trading range ($85,000–$94,500). If this trend continues, Bitcoin investors should prepare for worse scenarios.

The altcoin market presents a more mixed picture. The CoinDesk 80 Index (altcoin-weighted) has fallen 4.64% in the last 24 hours, while the Bitcoin-weighted CoinDesk 20 Index declined by 2.5%, showing weaker performance. DeFi and Layer-1 tokens have been particularly hard-hit, with assets in this category losing over 10% in value.

Solana (SOL), during this period, declined 3.15% to $122.80, while Cardano (ADA) dropped approximately 3.79% to around $0.35. Layer-1 network Aptos (APT) decreased by 1.60%, and other assets in this category also showed negative performance.

Liquidations in Derivative Markets and Market Uncertainty

Sharp movements in the crypto derivatives market have led to approximately $815 million in liquidations in a single day. Of this, $231 million can be attributed to Bitcoin positions, with the remainder occurring in the altcoin market. Traders with leveraged long positions were forced to close their positions due to margin shortages, adding further selling pressure.

Open interest (OI) in crypto derivatives has decreased by over 2% in nominal terms, falling to $138.14 billion. Bitcoin open interest increased by 0.65% in 24 hours, while Ethereum’s open interest remained unchanged. However, large tokens like Solana, Ripple (XRP), Cardano, Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC) saw open interest decline between 8% and 13%, indicating investor exits from these assets.

Volatility indicators reveal an interesting picture. The 30-day implied volatility for Bitcoin and Ethereum has not shown significant increases, suggesting traders are not preparing for major short-term price swings. The volatility spread between Bitcoin call and put options on Deribit remains negative, indicating continued downward pressure. A similar situation exists for Ether.

Increasing Selectivity in the Altcoin Market: The Story of Monero

A divergence has emerged in the altcoin market. While some assets resist the broader market sell-off, most have taken a severe hit. Monero (XMR), moving in a different direction from Bitcoin, has gained over 13% at around $465.40. Privacy coins continue to be among the strongest trends of 2026.

The Lighter exchange’s LIT token has experienced sharp losses due to waning interest after its December airdrop. LIT has lost about 10% recently, further consolidating HyperLiquid’s leadership in the derivative DEX space.

Tokens in the DeFi and Layer-1 categories have fallen in double digits. Ether.fi (ETHFI) declined 3.83%, Ethena (ENA) 5.68%, and Jupiter (JUP) 3.45%. Solana (SOL) and Cardano (ADA) also lost 3.15% and 3.79%, respectively, with Layer-1 assets generally under pressure. After the sharp liquidation chain in October, liquidity shortages in mid-market cap tokens have resumed, increasing price volatility.

Traditional Finance’s Countermove: Gold Rises, Bitcoin Lags

Gold has surpassed $5,500 per ounce, experiencing a heavy buying wave with a nominal trading volume of about $1.6 trillion in a single day. JM Bullion’s Gold Fear and Greed Index signals excessive optimism in precious metals. This indicator shows a massive shift toward traditional safe assets when fear dominates in crypto markets.

From an investor’s perspective, this situation is quite interesting. Despite its narrative as a “hard asset,” Bitcoin has not been as safe a haven as physical gold and silver during financial stress. Investors are favoring tangible metals with long-standing value over digital tokens. In this context, Bitcoin is more akin to a high-beta risky asset.

Pudgy Penguins: Rising Star in the NFT Market

Pudgy Penguins represents one of the most powerful NFT-based brands of this period. Moving beyond speculation, it has become a versatile consumer IP platform. Its strategy involves acquiring users through mainstream channels (toys, retail partnerships, viral media) and then integrating them into Web3 (games, NFTs, and PENGU token).

The ecosystem’s scope has become quite broad. Physical product sales have exceeded $13 million, with over one million units sold. Pudgy Party, in the gaming and experience category, surpassed 500,000 downloads in two weeks. The PENGU token has been distributed to over 6 million wallets. While the market currently values Pudgy higher than traditional IP counterparts with a premium, long-term success depends on retail expansion, game adoption, and the implementation of deeper token utility.

Final Assessment: Uncertainty Continues to Prevail

Tariff tensions have deeply affected not only Bitcoin but the entire crypto market. Liquidations in the derivatives market are concrete indicators of investor distrust. Meanwhile, the strong performance of traditional assets like gold reveals that investor risk perceptions are shifting amid monetary policies and trade wars.

Bitcoin trading below $94,500 keeps the risk of returning to the mid-November range alive. What will happen in this period is quite clear: selling, reaching liquidity, and risk aversion. To calm markets and restore risk appetite, geopolitical concerns need to ease or central banks must signal support.