The trade tensions between the United States and the European Union are escalating, and Trump's threat to impose additional tariffs has led to a drop in Bitcoin prices, causing fluctuations in the US stock and cryptocurrency markets. Bitcoin fell from over $110,000 to around $108,400, a decline of about 9%. The market is concerned about a potential liquidity crisis. Analysts believe this may just be a negotiation tactic and has not been implemented in practice.