Cryptocurrencies Under Pressure Amid Tariff Threats
Major cryptocurrencies faced significant pressure on Monday, largely due to U.S. President Donald Trump’s warning of stricter tariffs. This situation has contributed to consecutive days of declines in digital assets.
Bitcoin, Ethereum, and Ripple are struggling to regain their previous momentum. The total cryptocurrency market capitalization dropped by about 2% in the last 24 hours.
Currently, the market cap hovers around $3.23 trillion, reflecting traders’ cautious stance amidst ongoing geopolitical and macroeconomic uncertainties.
Bitcoin dipped below the $95,000 mark late last week and hasn’t managed a solid recovery since, hitting an intraday low of $91,910 on Monday before stabilizing somewhat.
Price movements seem to be trapped within a range, as traders closely monitor two major exponential moving averages on the daily chart: $95,889 and $92,412.
The area around $93,000 has become a critical short-term resistance level. Over the past day, Bitcoin’s trading has mostly been sideways, indicating indecision as buyers and sellers await a clearer market direction.
Traders Brace for Increased Volatility
Market players have cautioned that volatility may rise as the week advances. Trader Crypnuevo noted that broad market uncertainties could lead to more erratic price swings.
“Get ready for a volatile week ahead!” Crypnuevo stated in an analysis thread.
He highlighted that the U.S. Martin Luther King Jr. holiday means that the full market reaction will be felt when Wall Street reopens on Tuesday, potentially leading to increased crypto activity.
“Markets don’t like uncertainty,” he added, “but they eventually adapt.” He expressed a belief that downside pressure could push prices back into a lower range before any significant reversal occurs.
Key downside levels to watch include the 2026 annual opening price near $87,000 and the lower boundary of a wider trading range around $80,500.
Another trader, Daan Crypto Trades, pointed out existing technical damage, warning that Bitcoin had lost a crucial breakout level. He emphasized that maintaining a breakout after a period of sideways action is essential for bullish prospects.
“If prices dip below $93,000-$94,000 again, this could be just a liquidity gain within a broader downtrend,” he remarked.
At present, the near-term outlook for traders depends on whether Bitcoin can hold above key support levels. While general sentiment has dimmed since early November, technical analysts indicate that a broader bullish structure could remain intact if November’s lows are respected.
Tariffs and Economic Indicators in Focus
The recent drop in cryptocurrency values follows new tariff threats from President Trump, who announced plans to impose additional tariffs on European nations opposing the acquisition of Greenland.
The potential for widespread trade tensions between the U.S. and the EU has led investors to adopt a risk-averse approach, adversely affecting cryptocurrencies.
In addition to tariffs, traders are monitoring a packed macroeconomic calendar. Delayed data releases from the U.S. are expected later this week, including the Federal Reserve’s favored inflation metric, the November Personal Consumption Expenditure Index, due on Thursday.
Also noteworthy are the number of new unemployment claims and the first revision of third-quarter GDP statistics.
The macroeconomic backdrop remains somewhat contradictory as U.S. stocks began 2026 strong, yet tensions between the Federal Reserve and the White House over monetary policy persist alongside ongoing geopolitical instability in the Middle East.
Bitcoin’s attempt to reclaim the $100,000 threshold stalled last week. Although it hasn’t decisively dropped below $90,000, the recovery shows signs of stagnation. Ether appears to exhibit a similar trend, remaining above its November lows but struggling for upward movement.
Regulatory developments in the U.S. are also under scrutiny. Progress on the CLARITY Act, which aims to establish a framework for digital asset markets, has slowed as lawmakers negotiate key provisions.
Coinbase has indicated it will continue to collaborate with the administration. However, the environment in Washington seems to be growing increasingly tense.
Once viewed as a rival to traditional finance, crypto companies are now finding themselves working more closely with regulatory agencies and exploring oversight rules that can sustain the sector’s identity while facilitating broader adoption.
