Bitcoin drops to $92,000 after Trump's tariff remarks suppress the market, with defensive sentiment in the options market intensifying

Source: BlockMedia Original Title: [Crypto Market Update] Bitcoin dips on Trump’s ‘Greenland Tariff’ announcement… Fluctuates around $92,000 Original Link: https://www.blockmedia.co.kr/archives/1033941 Bitcoin remains near $92,000, showing short-term support, but market caution increases as U.S. President Trump’s comments on tariffs escalate tensions between the U.S. and Europe. Defensive positions in the options market have expanded, and investors’ risk appetite has contracted.

According to data at 8:30 AM on January 20, in domestic digital asset exchanges, Bitcoin(BTC) fell 1.23% from the previous day’s 9:00 AM, with a trading price of 137.25 million KRW. On a major global exchange platform, Bitcoin declined 2.22% to $92,655. Similarly, Ethereum(ETH) dropped 3.66% to $3,193, and XRP fell 1.56% to $1.99.

According to CoinGlass data, the total liquidation volume in the Bitcoin market over the past 24 hours was approximately $236.8 million, with about 96.12% of positions being long. The overall digital asset market liquidation volume was about $866.17 million.

Bitcoin’s price previously declined due to Greenland issues, as President Trump hinted at possible new tariffs on European countries including Denmark, causing the price to dip to $91,800.

On January 17, President Trump announced via social media that starting February 1, tariffs of 10% would be imposed on products from eight European countries including Denmark, France, and Germany. He stated, “Tariffs will be maintained until a deal is reached for the U.S. to fully acquire Greenland,” and warned, “If there is no progress by the end of June, the tariff rate could rise to 25%.”

This move goes beyond merely addressing trade imbalance, turning into pressure for territorial acquisition, which has heightened market unease. Denmark and Greenland’s autonomous governments have made it clear they are not for sale, leading to unusual tensions among NATO allies.

In response, Matt Howells-Barby, Vice President of a major exchange, diagnosed that this price adjustment again demonstrates the asymmetric downside risk in the digital asset market. He said, “The market reacts to negative news much more sensitively than to positive catalysts.”

However, he pointed out, “The decline is only about 3.5%, which is relatively limited,” and added, “The market also seems to be considering the possibility that Trump’s tariff comments might ease.” He further noted, “In the days around the Davos Forum, the intensity of trade rhetoric between the EU and the U.S. will determine the sensitivity of the digital asset market.”

The Davos Forum, held annually in the Swiss resort town of Davos, began its preparatory meetings on January 19, lasting five days. This year, over 200 sessions are planned, including panel discussions and high-level keynote speeches. Amid escalating tensions with European countries, President Trump plans to attend and deliver a speech on January 21.

The options market also shows increased defensive sentiment. According to Deribit, a derivatives exchange, the 30-day delta skew index rose to 8%, indicating that put options are priced higher than call options. Typically, in a neutral market environment, this indicator stays within the range of -6% to +6%. This suggests that large investors’ expectations for Bitcoin to break above $100,000 after recent price adjustments have weakened. Macroeconomic variables continue to play a major role, influencing investors’ risk appetite.

Meanwhile, the Fear & Greed Index, reflecting market sentiment, was at 44 points today, slightly down from 49 points the previous day. When near 0, it indicates strong selling pressure; near 100, it indicates strong buying inclination.