Bitcoin fluctuates! US and EU tariff panic continues, Kraken: shallow correction, watch out for TACO trading

The US-Europe tariff war has triggered market panic, with Bitcoin fluctuating below $93,000. Experts point out that the current correction is mild, and long-term holders’ selling pressure has significantly eased. Keep an eye on the “TACO” trading scenario.

The US-Europe tariff conflict continues, Bitcoin briefly dips below 92,000

Affected by the panic over new tariffs and trade wars involving Trump and some European countries, Bitcoin ($BTC) price once fell below $92,000. Since yesterday was a US market holiday, trading liquidity was relatively low. Although Bitcoin recovered some ground afterward, the daily decline still reached 2%, and as of the time of writing, the price continues to hover below $93,000.

Meanwhile, funds continue to flow into safe-haven assets, with gold prices soaring again to nearly $4,700 per ounce, a new all-time high, with an increase of over 70% in the past year. This indicates that, amid escalating geopolitical turmoil, traditional safe-haven assets remain favored.

Image source: CoinMarketCap

Shallow correction or a buy signal? Kraken: Watch for TACO trading

Regarding market trends, Kraken Vice President Matt Howells-Barby told CoinDesk that since the crash on October 10, 2025, the Bitcoin market has continued to show asymmetric downside risk, meaning the market’s reaction to negative news is often more intense than to positive catalysts.

Earlier this week, Bitcoin was in a favorable position for upward movement, but geopolitical headlines quickly disrupted the rally.

However, Howells-Barby also mentioned that this correction in Bitcoin is relatively mild, about 3.5%, which suggests traders may be preparing for the “TACO” scenario (Trump Always Chickens Out), referring to Trump backing down at the last minute, similar to the market pattern when the US threatened tariffs on China and other countries last year.

As political and business leaders gather at the Davos World Economic Forum, he warns that market volatility will intensify in the coming days. The cryptocurrency market will dance to any statements about escalation or de-escalation of tariffs between Europe and the US.

Bitcoin options data shows a bearish bias, on-chain activity declines

Senior analyst Marcel Pechman cited Deribit data, pointing out that Bitcoin options Delta skew has risen to 8%, indicating a premium on put options (bearish options). Under normal neutral market conditions, this indicator usually ranges between -6% and +6%.

Image source: Cointelegraph

Additionally, according to Nansen data, the number of daily active Bitcoin addresses has fallen to 370,800, a 13% decrease over the past two weeks.

The decline in active Bitcoin network activity also raises concerns, as healthy on-chain demand is fundamental to supporting mining investments.

Image source: Cointelegraph

Long-term holder selling pressure eases, focus on $93,000 to $110,000

However, there is good news: the selling pressure from long-term Bitcoin holders has eased.

Bitfinex analysts pointed out that the weekly sell-off by long-term holders has dropped sharply from a peak of over 100,000 BTC per week earlier this cycle to about 12,800 BTC.

But analysts also warn that Bitcoin currently faces strong resistance between $93,000 and $110,000, a zone that previously caused price stagnation during rebounds and could again limit upward movement.

They believe that for Bitcoin to sustain a rebound, the market structure needs to transition into a phase where “mature supply” begins to exceed the spending of long-term holders.

Looking back, Bitcoin experienced such market structures during August 2022 to September 2023, and March 2024 to July 2025, after which Bitcoin entered more robust and sustained bullish phases.

Further reading:
50T Funds founder: Bitcoin targets $180,000, optimistic about tokenization, blockchain, and AI integration

This content is summarized and generated by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, so there may be logical biases or informational errors. The content is for reference only and should not be considered investment advice.