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The price of Bitcoin fell about 3% to about $92,000 in early Asian trading on Monday, as traders downgraded risks after President Donald Trump threatened to impose new taxes on eight European countries, linking the prices to his push for the United States to annex Greenland.
Mr Trump said the United States would impose additional tariffs of 10% starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, and would raise them to 25% on June 1 if there is no deal.
European officials criticized the move, calling it coercive, as the threat of tariffs escalated a dispute that was already straining transatlantic relations.
Overview of the market
- Bitcoin: $92,506, down 2.6%
- Ethereum: $3,203, down 3%
- XRP: $1.96, down 4.7%
- Total cryptocurrency market cap: $3.21 trillion, down 2.7%
The holiday season brings economic weakness and a future that is leading the risk group
These shocks began to affect the global markets through the financial system, as the US markets were closed for the holiday, which also led to a recession. US stock futures fell, S&P 500 futures fell 0.7% and Nasdaq futures fell 1.0% in early Asian trading hours.
Asian stocks fell as the risk spread, with Japan’s Nikkei index down nearly 1%, and the MSCI Asia-Pacific index outside Japan down 0.1%. European markets also saw weak performance, with the Euro Stoxx 50 index and DAX futures both down 1.1%, due to traders expecting a new wave of trade uncertainty.
Money reflected the move. The dollar fell against traditional safe havens, falling about 0.3% against the yen and 0.2% against the Swiss franc, while the euro stabilized after earlier losses.
Liquidations of Bitcoin leveraged positions help when power is low
Commodity prices moved in the opposite direction. Gold jumped 1.5% to the index due to a rush to safe havens, and silver also recorded new levels, while Brent and US crude fell as investors anticipated what the start of a major trade war between the United States and Europe would mean for growth and demand.
Cryptocurrency traders saw the financial shock in real time, as Bitcoin trading continued over the weekend and opened the Asian market on Monday. As the price dropped, existing positions were liquidated, and some market observers saw a large liquidation of long positions in the decline.
In Brussels, EU diplomats said diplomats had agreed to try to stop Trump from going further, preparing to respond if the tariffs go ahead.
Options include re-imposing tariffs on 93 billion US dollars worth of imports, and, controversially, considering an anti-coercion tool that the bloc has never used before that could prevent access to tenders, funds or trade.
Experts warn of plane shakes
Strategists also pointed to the biggest market risk behind the headlines: financial outflows. Deutsche Bank said that European investors have about $8 trillion in US bonds and stocks, and warned that any change in these sectors could be more effective than stock prices, explaining that it is a “powerful tool” rather than just a change in trade.
This list adds some motivational factors. China is preparing to announce economic growth figures, the Bank of Japan will hold its meeting later this week as investors await signs of tightening monetary policy, and US data released at the end of the week will confirm expectations of when the Federal Reserve will cut interest rates again. The leaders are also heading to Davos, where trade and security issues are expected to be high on the agenda as tensions in Greenland escalate.
A note Asian markets open: Bitcoin price falls 3% as Trump’s threat to impose tariffs shakes global markets. appeared for the first time Cryptonews Arabic.
