TLDR
- Bitcoin dropped 3.6% from $95,450 to below $92,000 on Monday after Trump announced 10% tariffs on eight European countries over Greenland
- Over $750 million in Bitcoin long positions were liquidated in four hours as markets reacted to escalating trade tensions
- Gold futures reached record highs of $4,667 per ounce while silver futures topped $93 per ounce for the first time
- The European Union is considering $108 billion in retaliatory tariffs against the United States in response to Trump’s trade threats
- Stock futures fell as markets entered risk-off mode with crypto acting like tech stocks during the trade dispute
Bitcoin experienced a sharp decline on Monday morning as President Donald Trump’s tariff threats against Europe sent shockwaves through financial markets. The digital asset fell 3.6% in just a few hours.
The price dropped from $95,450 to below $92,000 on Coinbase during early trading. At the time of reporting, Bitcoin had partially recovered to $92,580.
The sell-off triggered massive liquidations across crypto markets. Over $750 million in long positions were wiped out in four hours alone.
Total 24-hour liquidations exceeded $860 million according to Coinglass data. The liquidation cascade added pressure to an already volatile market.
Trump announced plans over the weekend to impose 10% tariffs on eight European countries starting February 1. The tariffs target Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom and Norway.
🌍 Trump Unveils Europe Tariff Plan Tied to Greenland
President Trump says the U.S. will impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland – rising to 25% unless a deal is reached for the U.S. to acquire Greenland.
He frames the… pic.twitter.com/YN0aVvva8g
— Trader Edge (@Pro_Trader_Edge) January 18, 2026
The president linked the tariffs to tensions over Greenland. He stated the rates would increase to 25% by June if no agreement is reached.
Traditional Markets React to Trade War Fears
Gold futures surged to record highs of $4,667 per ounce as investors sought safe haven assets. Silver futures also climbed above $93 per ounce for the first time in history.
Stock futures declined as markets processed the escalating trade conflict. Precious metals continued to decouple from digital assets during the turmoil.
European leaders responded with strong opposition to Trump’s tariff plans. French President Emmanuel Macron called for the EU to activate its “anti-coercion instrument.”
The EU is now considering $108 billion in previously delayed retaliatory tariffs against American products. Eight European nations issued a joint statement saying “Europe will not be blackmailed.”
Danish Prime Minister Mette Frederiksen echoed this sentiment. Germany’s finance minister and Sweden’s prime minister expressed similar views.
Market Analysts Weigh In
Andri Fauzan Adziima from Bitrue said the tariffs are creating a risk-off mood in markets. He noted Bitcoin is acting like a tech stock and getting hit hard by economic uncertainty.
Jeff Mei from BTSE exchange said the trade war threats are causing market unease. He pointed out Trump is threatening some of America’s closest allies this time.
Mei warned traders are considering worst-case scenarios where markets could fall to April 2025 levels. He suggested institutional investors may de-risk their holdings when US markets open.
US Treasury Secretary Scott Bessent defended the tariff strategy on NBC’s Meet the Press. He said Europeans project weakness while the US projects strength.
Thousands of protesters rallied in Denmark and Greenland over the weekend. In Greenland’s capital Nuuk, demonstrators marched to the US embassy chanting the island’s Greenlandic name.
The Supreme Court has not yet ruled on the legality of Trump’s tariff powers under a 1977 national emergency law. Trump has expressed concern about losing this ability, calling it a potential “terrible blow” to the United States.
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