What To Know:
- Bitcoin slid 1.8% to around $90,929 after briefly stabilizing near $92,000, as renewed US–Europe trade tensions and tariff concerns unsettled global markets.
- Heavy liquidations hit crypto markets, though steady inflows into spot Bitcoin ETFs helped limit deeper losses during heightened volatility.
- Geopolitical uncertainty intensified after President Donald Trump’s tariff and Greenland remarks, pushing investors toward safe-haven assets such as gold, which climbed to a record high near $4,700 per ounce.
Bitcoin retreated on Monday after briefly stabilizing near the $92,000 mark, as geopolitical tensions between the United States and Europe have yet again unsettled global markets.
The world’s largest cryptocurrency was trading at $90,929.29 at the time of writing, down 1.8% over the past 24 hours. The pullback followed a short-lived recovery from last week’s sell-off, which had been triggered by escalating concerns over tariffs, trade retaliation, and mounting political uncertainty.
Bitcoin Dips Amid US-Europe Trade Tensions
Market data from NS3.AI showed significant liquidations across major crypto exchanges during the downturn. Analysts noted that steady inflows into spot Bitcoin ETFs helped cushion deeper losses. This is because the inflows helped anchor stability during periods of heightened volatility.
Against a tense macro backdrop, the latest price move unfolded. Investors remained focused on the growing dispute between Washington and several European nations over tariffs and a renewed diplomatic standoff involving Greenland. Analysts have shared that the fears of additional trade restrictions were the main factor pushing prices down on the weekend. Some pointed to thinner liquidity conditions and elevated leverage, which amplified price swings during low-volume trading hours. Those fears deepened after US President Donald Trump posted a lengthy statement on Truth Social regarding European trade relations and Greenland’s strategic position.
“We have subsidized Denmark and the countries of the European Union for many years by not charging them tariffs,” Trump wrote, adding that global security considerations had elevated Greenland’s importance for the United States.
He warned that several European countries had recently traveled to Greenland “for purposes unknown,” describing the situation as dangerous for international stability.
Trump later announced that beginning February 1, eight countries, including Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, would face a 10% tariff on all goods and services sold to the US. The tariff rate is set to rise to 25% on June 1.
In a statement, Trump said the higher tariff would remain in place until a deal is reached for the “complete and total purchase of Greenland,” adding that the United States had pursued such an agreement for more than 150 years.
“These modern defense systems depend on geography,” he wrote, citing national security investments tied to missile protection programs.
The remarks rattled markets already sensitive to geopolitical risk. Shortly after Trump’s comments circulated, Bitcoin briefly slipped below $92,000 again near current levels.
Traditional safe-haven assets moved in the opposite direction. Gold surged to a record high of $4,691.6 per ounce, approaching the $4,700 threshold as investors sought protection from political uncertainty and trade-related inflation risks.
Paul Howard, senior director at crypto trading firm Wincent, said the magnitude of Bitcoin’s decline was amplified by market conditions.
“With the US observing the Martin Luther King holiday, liquidity has been thin,” Howard said. “That environment contributed to a 2.2% drawdown that appears outsized relative to the immediate catalyst.”
Prediction markets also reflected rising attention on the issue. On Polymarket, betting volume associated with the question “Will Trump acquire Greenland before 2027?” surpassed $16 million. The probability of a “yes” outcome climbed to 20%, which marks a 13% increase over recent sessions.
Since the start of January, Greenland has shifted from a peripheral geopolitical topic to a central point of global debate. The autonomous Arctic territory, governed by Denmark, now sits at the heart of a dispute that threatens to strain relations between NATO allies.
When Trump first raised the idea of acquiring Greenland during his initial term in 2019, the proposal was largely dismissed as ‘unserious’. Similar remarks at the start of his second term in 2025 drew limited reaction.
That sentiment has flipped sharply in recent weeks. Following the January 3 US military action in Venezuela that led to the removal of President Nicolás Maduro, Trump’s foreign policy statements have carried greater weight among investors.
Also Read: Polymarket Faces Backlash Over US’ Venezuela Invasion Bet
