Bitcoin Braces as Trump Slaps 25% Tariffs on Europe Over Greenland
US President Donald Trump introduced escalating tariffs on eight European nations, beginning on February 1, threatening 10% levies that can rise to 25% by June, till Denmark agrees to promote Greenland.
Bitcoin faces renewed volatility as geopolitical tensions mirror the October 2025 tariff shock that triggered $19 billion in liquidations.
Trump declared by way of Truth Social that Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face instant tariffs “till such time as a Deal is reached for the Complete and Total buy of Greenland.”
The transfer sparked emergency EU conferences and unified condemnation from European leaders, with UK Prime Minister Keir Starmer calling tariffs on allies “fully unsuitable” whereas France’s Emmanuel Macron warned “no intimidation nor menace will affect us.“
European Leaders Unite Against Unprecedented Threat
The tariff announcement triggered a rare diplomatic disaster as EU ambassadors convened emergency conferences on Sunday afternoon.
European Commission President Ursula von der Leyen emphasized that “tariffs would undermine transatlantic relations and danger a harmful downward spiral,” whereas declaring full EU solidarity with Denmark and Greenland.
Swedish Prime Minister Ulf Kristersson stated bluntly, “We won’t let ourselves be blackmailed,” characterizing Trump’s calls for as an EU-wide situation requiring a collective response.
Finland’s President Alexander Stubb, beforehand thought-about a Trump ally via shared golf pursuits, urged that “amongst allies, points are finest resolved via dialogue, not via strain.“
Norway’s Prime Minister Jonas Gahr Støre agreed, stressing “threats don’t have any place amongst allies.“
Even Trump supporter Nigel Farage criticized the tariffs, admitting “we don’t all the time agree with the US authorities and on this case we definitely don’t. These tariffs will damage us.“
Spain’s Prime Minister Pedro Sanchez delivered maybe the sharpest rebuke, warning {that a} US invasion of Greenland “would make Putin the happiest man on earth” by legitimizing Russia’s Ukraine invasion and spelling “the dying knell for Nato.“
EU international coverage chief Kaja Kallas additionally echoed this sentiment, noting “China and Russia have to be having a subject day” as they “profit from divisions amongst Allies.“
Denmark’s Foreign Minister Lars Løkke Rasmussen additionally expressed shock at Trump’s announcement following what he described as “constructive conferences” with Vice President JD Vance and Secretary of State Marco Rubio earlier within the week.
Given Trump’s threats over Greenland, German MEP Manfred Weber suggested halting the lately negotiated EU-US commerce deal, stating, “The 0% tariffs on US merchandise have to be put on maintain.“
Meanwhile, hundreds protested throughout Greenland and Denmark, carrying banners studying “Greenland is for Greenlanders” and “Hands Off Greenland.“
Tariff Uncertainty Clouds Bitcoin Recovery
Bitcoin at the moment trades round $95,000 after weeks of range-bound motion between $94,000 and $97,000.
Market members stay cautious following Trump’s newest geopolitical escalation, which provides recent uncertainty to an already fragile restoration.
The crypto has averted revisiting decrease assist ranges in 2026, although beneficial properties stay skinny amid persistent geopolitical dangers.
CryptoQuant founder Ki Young Ju expects Bitcoin to enter “simply boring sideways for the subsequent few months” quite than experiencing sharp rallies or deep crashes.
“Capital inflows into Bitcoin have dried up. Liquidity channels are extra numerous now, so timing inflows is pointless,” he acknowledged, noting cash has “rotated to shares and glossy rocks.“
Despite a lack of buying pressure, massive holders, together with US banks, proceed to build up Bitcoin, with no clear indicators of capitulation but.
Speaking with Cryptonews, John Glover, Chief Investment Officer at Ledn, suggests Bitcoin stays in Wave IV of its bull cycle, with completion targets between $71,000 and $84,000.
“Confirmation as to which path we’re following will come from both a break and shut above $104,000 which might affirm we are actually beginning Wave V, or a break under $80,000, which implies a transfer to the low $70s earlier than we head larger,” Glover defined.
October Tariff Precedent Raises Concerns
Trump’s aggressive tariff technique beforehand devastated crypto markets in October 2025 when 100% tariffs on Chinese imports triggered one among historical past’s largest single-day liquidation occasions.
Bitcoin plunged under $105,000 as $19 billion in leveraged positions unwound inside 24 hours, forcing 1.6 million merchants into liquidations, with practically 87% being lengthy positions.
Open curiosity in Bitcoin futures collapsed by greater than 30% throughout that selloff earlier than recovering above $114,000 days later.
The present tariff menace targets America’s closest European allies quite than adversaries, creating unprecedented uncertainty about transatlantic relations.
Markets now face potential Supreme Court rulings on the legality of tariffs alongside escalating geopolitical tensions over Greenland, Venezuela, and broader world commerce coverage.
These mixed components threaten to duplicate October’s volatility regardless of Bitcoin’s current worth stability.
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