In a turbulent market reaction, Bitcoin experienced a decline of 3.6% on Monday, falling from $95,450 to below $92,000. This drop followed President Donald Trump”s announcement of new tariffs targeting several European nations, raising concerns of a potential trade war.
As the cryptocurrency market reacted to the escalating tensions, liquidations surged, totaling approximately $750 million within just four hours. Data from Coinglass indicated that the overall liquidations exceeded $860 million over a 24-hour period, highlighting the severity of the selling pressure affecting digital assets.
Gold and silver, traditionally viewed as safe-haven assets, reached record highs amid the uncertainty. Gold futures soared to an unprecedented $4,667 per ounce, while silver futures surpassed $93 for the first time.
The tariffs, which are set at 10% and will affect imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, are linked to broader geopolitical tensions, particularly regarding Greenland. Trump indicated that without a deal, these tariffs could escalate to 25% by June.
In response to the tariff announcement, European leaders have united in their condemnation. French President Emmanuel Macron has called for the implementation of the EU”s “anti-coercion instrument,” which could restrict U.S. access to European markets. The EU is reportedly considering $108 billion in retaliatory tariffs on American goods.
Market analysts are closely monitoring the situation, as the combination of trade tensions and tariff threats is fostering a risk-off sentiment. Experts have noted that Bitcoin is beginning to behave similarly to technology stocks during times of economic stress, prompting concerns among institutional investors.
Compounding the uncertainty, protests erupted in Denmark and Greenland in reaction to Trump”s tariff strategy, with demonstrators voicing their discontent in the streets.
The current political climate has also raised questions regarding the legality of Trump”s tariff authority, with the Supreme Court yet to rule on the matter. As the market braces for potential fallout, the sentiment remains cautious amid these shifting dynamics.
