Crypto Sees $300M Liquidations As Trump Threatens 200% France Tariff, Bitcoin Slides to $90K

Bitcoin fell on Tuesday, extending recent losses, as concerns over US demand for Greenland prompted traders to steer clear of speculative assets.

Markets were further rattled after US President Donald Trump threatened a 200% tariff on French wines and champagnes, as he pushes for French President Emmanuel Macron to join his Board of Peace initiative aimed at resolving global conflicts.

BTC largely wiped out a mid-January recovery, moving back in sight of lows seen at the beginning of the year as traders favored physical, safe-haven assets such as gold.

The Bitcoin price dropped to $90,500 before recovering to $91,144 as of 3:25 a.m. EST. However, BTC is still down 2.2% over the last 24 hours, as trading volume also plunged 10% to $39 billion, indicating a drop in trading activity.

Bitcoin is dropping in tandem with the crypto market, which has lost 2% in the day to a $3.08 trillion market capitalization as the average Relative Strength Index (RSI) fell to 35, according to CoinMarketCap data.

As a result, traders were liquidated, with the total liquidations coming in at $356 million, $107 million coming from BTC longs, according to Coinglass data.

Trump Escalates Trade War, Threatens 200% Tariff on French Goods

In a new development, after threatening to add tariffs of 25% to countries that are in support of Greenland, US President Donald Trump said he will impose a 200% tariff on French wines and champagnes.

When asked by a reporter about Macron saying he ‌will not join the board, Trump said, “Did he say that? Well, nobody wants him because he will be out of office very soon.”

“I’ll put a 200% tariff on his wines ​and champagnes, and he’ll join, but he ​doesn’t have to join,” Trump added.

France intends to ‌decline the ‍invitation to join the initiative, at this stage, ‍a source close to Macron said on Monday.

Trump initially proposed establishing the Board of Peace when he announced last September his plan to end the war in Gaza. But an invitation sent to world leaders last week outlines a broad role ending conflicts globally.

A draft charter sent to about 60 countries by ‍the U.S. administration calls for members to contribute $1 billion in cash if they want their membership to ‍last more ⁠than three years.

The threat to proceed with his tariffs continues to heighten geopolitical tensions, broadly sapping investor appetite for crypto. This is because speculative assets tend to perform poorly in periods of high uncertainty.

Retail sentiment towards BTC also remained weak. The Coinbase Bitcoin Premium Index showed the world’s largest crypto continuing to trade at a discount in U.S. markets in comparison to the global average, Coinglass data showed.

Can the BTC price continue dropping as retail sentiment remains weak?

Is Bitcoin Still in a Bearish Structure?

Bitcoin price continues to trade in a technically bearish environment, with recent price action reflecting a weak corrective bounce rather than a proper recovery.

BTC price is currently slipping toward $90,000, struggling to hold above short-term averages and showing signs of renewed selling pressure.

After the sharp breakdown in November, Bitcoin attempted a rebound from the $80,000–$82,000 support zone, all within a rising channel pattern.

The BTC price outlook remains bearish. The 50-day Simple Moving Average is sloping downward, and the price is failing to establish support above this level, highlighting persistent medium-term weakness.

The $95,000 resistance zone continues to act as a supply area. Multiple failed attempts to reclaim this level indicate that sellers are firmly in control and that upside momentum is insufficient to challenge higher-timeframe resistance.

Bitcoin’s Relative Strength Index (RSI) is currently sitting below the neutral 50 level, after previously being rejected from the 65 zone, as sellers remain in control.

BTC/USD Chart Analysis: TradingView

A failure to hold the rising channel support would likely trigger a bearish resolution, opening the door for a move back toward the $88,500 level, followed by a potential retest of the $82,000–$80,000 demand zone.

Conversely, if bulls take charge, BTC could experience a slight recovery towards the $94,500 resistance level. However, given the current geopolitical tensions sentiment is still fragile.