## Will the decline continue? The answer depends on these factors

The most common concern is: will Bitcoin continue to fall? In simple terms, it depends on two variables. First, whether the tariff game between Europe and the US from tonight to tomorrow will escalate. Second, the speed of response from the judicial authorities. If there are no new policy stimuli, the market is likely to take a breather and recover. But if the trend continues to escalate? The probability of further declines tomorrow is actually not low.

## What is the source of this decline

First, understand why BTC is falling this time. The direct cause is the US tariff actions against countries related to Greenland, which has triggered expectations of European retaliation. More painfully, the US also plans to retaliate again based on Europe's countermeasures—this kind of "mutual harm" situation last occurred during the US-China trade war in April.

But this time? The scale could be more intense than in April. The key lies in the US dependence on European imports. According to US Census data, by October 2025, the US imported about $266.3 billion from China and about $537.9 billion from the EU—more than twice China's share.

Europe's import structure also hits key pain points: auto parts, luxury goods, pharmaceuticals and chemicals, high-end manufacturing. Any tariff increase in these sectors could directly impact US inflation expectations. Moreover, Europe's leverage is far more than just reciprocal tariffs...

The market's anxiety is less about the trade war itself and more about the oscillation of inflation expectations.