Gold Hits Record High as Bitcoin Falls on Escalating US–EU Tariff Tensions
Bitcoin (BTC) and gold moved in reverse instructions as tensions over tariffs escalated between US President Donald Trump and the European Union.
While the dear metallic rallied to recent report highs amid rising geopolitical uncertainty, the main digital cryptocurrency slipped. This contrasting transfer mirrors previous patterns noticed in October and has reignited debate over what may come subsequent for each property.
US–EU Trade Tensions Rise After Trump’s Latest Tariff Move
On January 17, 2026, President Trump introduced a ten% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, efficient February 1. The tariffs will rise to 25% on June 1 and keep in impact till the United States secures an agreement to purchase Greenland.
Meanwhile, representatives from the eight nations affected by the brand new US tariffs met for emergency talks on Sunday. In a joint statement, President Costa and President von der Leyen stated the EU “stands in full solidarity” with Denmark and the people of Greenland, signaling a unified political response to Washington’s newest transfer.
Furthermore, the Financial Times reported that the European Union is weighing a broader countermeasure package deal that would embody tariffs value as much as €93 billion ($107.71 billion) or limit US corporations from the bloc’s market.
Tariff Shock Drives Investors to Gold as Stocks and Bitcoin Turn Lower
Markets reacted shortly to the tariff information, but in opposite ways. Gold costs surged to $4,690/ozin early Asian buying and selling hours at present, marking a brand new all-time high (ATH).
Silver costs additionally rose to a report value of over $94/oz. In distinction, shares opened decrease.
Bitcoin additionally moved south alongside broader threat property. BeInCrypto Markets data confirmed that BTC dipped under the $95,000 stage.
At the time of writing, the asset was buying and selling at $92,574, down 2.67% over the previous 24 hours. The whole cryptocurrency market capitalization fell by practically $98 billion throughout the identical interval.
The value drop triggered a wave of liquidations throughout the crypto market. Over the previous 24 hours, whole liquidations reached $864.35 million, with lengthy positions accounting for greater than $780 million of that determine.
“Bitcoin falls practically -$4,000 as $500 million value of levered longs are liquidated in 60 minutes,” The Kobeissi Letter wrote.
The distinction between gold and Bitcoin amid this tariff-driven turmoil exposes key variations in how markets view these assets. Gold’s long-standing position as a retailer of worth during times of financial and geopolitical stress stays largely undisputed.
Bitcoin, usually described as “digital gold,” continues to commerce like a threat asset in moments of heightened uncertainty, with value motion carefully tied to broader market sentiment reasonably than quick safe-haven demand.
What’s Next for Bitcoin in January?
Analyst Timothy Peterson supplied insights on Bitcoin’s lagged response to Trump’s announcement. He famous that regardless of 24/7 buying and selling, Bitcoin’s value didn’t react for about 36 hours, solely dropping as soon as institutional buying and selling started in Asia.
“This illustrates how most intraday ‘information’ about value actions is often an irrelevant storyline informed after the very fact. Not solely that, you had plebs leveraged up, regardless of greater than a full day’s warning that this was coming (This is the third Trump tariff announcement, Bitcoin wrecked each time.) Speechless,” he added.
Furthermore, Crypto Rover warned that this week “may shake the whole market,” citing a convergence of main coverage developments which will set off volatility across shares and cryptocurrencies.
“EU tariffs threaten commerce flows value practically $1.5 trillion,” he said. “If the EU begins constructing commerce offers with nations that the US can be sanctioning, the US dangers being pushed out of key commerce routes. That can be: Bearish for international threat sentiment, Bearish for US shares, Bearish for the greenback.”
Rover talked about that the Supreme Court’s upcoming resolution provides one other layer of uncertainty, as a ruling both for or in opposition to the tariffs may unsettle markets. He famous that each situations are more likely to strain shares and cryptocurrencies.
Amid this backdrop, specialists stay divided on how Bitcoin may carry out. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, suggested that the Bitcoin-to-gold ratio is extra more likely to proceed declining towards 10x, a transfer that might sign sustained outperformance by gold, reasonably than rebound towards 30x in Bitcoin’s favor.
“Everyone expects Bitcoin to comply with gold’s lead and rally to new highs. But the market has given speculators approach an excessive amount of time to purchase. What’s way more possible is that Bitcoin’s failure to match gold’s positive aspects undermines its narrative as digital gold, leading to a spectacular crash,” economist Peter Schiff posted.
Veteran dealer Peter Brandt famous that US greenback–denominated property could underperform physical commodities. He additionally expressed uncertainty over Bitcoin’s position on this shift and predicted that altcoins would lose important worth.
“Gold will return to the world’s most reliable retailer of wealth. USD denominated property will lose worth to bodily commodities — which, BTW, could or could not embody Bitcoin. Altcoins will turn out to be extra nugatory than USDs,” the dealer commented.
Despite this, optimism stays in some corners. Some analysts nonetheless count on Bitcoin to catch as much as gold.
“Gold added roughly $10 trillion in marketcap final 12 months. It wouldn’t shock me if a few of that revenue is rotated/diversified into bitcoin,” a market watcher remarked.
With commerce tensions escalating and threat urge for food deteriorating, the market will quickly reveal whether or not Bitcoin can catch up or if gold stays the undisputed safe-haven commonplace.
The put up Gold Hits Record High as Bitcoin Falls on Escalating US–EU Tariff Tensions appeared first on BeInCrypto.
