Bitcoin (BTC) and other cryptocurrencies are experiencing renewed selling pressure as escalating trade tensions between the United States and China lead to fresh tariffs on both sides. The largest cryptocurrency dropped to as low as $91,000 on Monday, while major altcoins like Ethereum (ETH) and Solana (SOL) also faced losses.

CME Bitcoin Futures Open Interest Drops 4%

The most recent installment of tariffs comes after the US enacted a 10% tax on all items from China, leading China to respond with its own tariffs on certain US imports, such as oil and liquefied natural gas, starting February 10.

In another development, China has launched an inquiry into Google LLC over supposed antitrust infringements, intensifying the tension between the two economic giants.

This market turbulence has wiped out the benefits from a short relief rally on Monday, which occurred after the Trump administration decided to postpone tariffs on Mexico and Canada for a month. The weekend’s initial declaration of US tariffs had already triggered a steep drop in cryptocurrency prices.

Investor trust in riskier assets has been notably affected, as US investors pulled a net $235 million from a set of 12 Bitcoin-centric exchange-traded funds (ETFs) on Monday.

Moreover, open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) Group Inc.’s derivatives market decreased by 4%, reflecting a more cautious attitude among institutional investors.

President Donald Trump, recognized for his pro-crypto position, has unintentionally brought more uncertainty to digital asset markets.

Although cryptocurrencies experienced a rise following Trump’s election, the market now faces a difficult landscape marked by geopolitical strife and regulatory obstacles.

Historical Trends Suggest Potential For Deeper Corrections

As of this writing, Bitcoin was trading at $98,970, about 13% shy of its all-time high. Meanwhile, US ETFs investing in Ethereum witnessed record trading volumes on Monday, with significant liquidation of leveraged positions rattled by ongoing trade uncertainties.

The iShares Ethereum Trust, led by BlackRock, accounted for nearly half of the $1.5 billion in trading volume among a group of nine ETFs. ETH plummeted by as much as 27% on Monday, leading to over $600 million in liquidations within perpetual futures markets, according to Bloomberg data.

Analyzing current price trends, crypto analyst Ali Martinez identified $92,180 as a critical support level for Bitcoin, based on MVRV (Market Value to Realized Value) pricing bands.

If this support level fails, the next target could be $74,400. Despite the recent price correction, Bitcoin traders are still enjoying a profit margin of 3.36%.

Historically, local bottoms have formed when profit margins drop below -12%, suggesting that Bitcoin could have further downside potential before reaching a true bottom.

Additionally, the MVRV Momentum indicator has remained in negative territory since the beginning of the year, signaling ongoing market weakness.