Greenland Gambit Sparks Crypto Chaos: Tariff Threats Send Bitcoin Sliding – Analysts Eye $75K
Markets convulsed after President Donald Trump threatened steep tariffs on eight European nations except Denmark cedes Greenland, with rhetoric together with hints the U.S. would possibly seize the territory by power, triggering a world risk-off transfer on January 20.
Gold surged to record highs whereas Bitcoin plunged into the low-$90K vary, with some intraday trades dipping as little as $87K.
The crypto market shed almost $150 billion in market capitalization as leveraged positions unwound violently, exposing Bitcoin’s continued therapy as a speculative asset relatively than the protected haven its proponents declare it to be.
Tariff Shock Drives Historic Divergence
Trump’s Saturday announcement focused Germany, France, the UK, the Netherlands, Finland, Sweden, Norway, and Denmark with 10% tariffs beginning February 1, escalating to 25% by June 1, except a Greenland deal is reached.
ING economists warned that “extra tariffs of 25% would in all probability shave 0.2 share factors off European GDP progress,” compounding recession fears already gripping the continent.
The tariff risk successfully reopened the commerce battle between the EU and the U.S., regardless of a short lived truce reached in late July, elevating the stakes and bringing a far more durable strategy.
European officers introduced ahead the choice of activating the so-called anti-coercion instrument, the EU’s commerce “bazooka“, permitting the bloc to impose tariffs and funding limits on offending nations.
French President Emmanuel Macron introduced he would request the instrument’s activation, whereas Manfred Weber from the European Parliament’s largest occasion indicated the July deal was now “on ice.”
European international locations maintain roughly $8 trillion in U.S. bonds and shares, making Europe by far the most important U.S. lender and exposing the deep interdependence that might flip this standoff right into a full-blown disaster.
Germany’s export-reliant financial system faces notably acute strain, with ING economist Carsten Brzeski warning the brand new tariffs can be “absolute poison” for the delicate restoration underway.
German exports to the United States fell 9.4% from January to November in contrast with a yr earlier, and the commerce surplus dropped to its lowest degree since 2021.
Meanwhile, gold’s parabolic rally pushed costs previous $4,800 per ounce to all-time highs.
TD Securities’ Daniel Ghali told Bloomberg that “gold’s rally is about belief. For now, belief has bent, however hasn’t damaged. If it breaks, momentum will persist for longer.“
Crypto Markets Suffer Violent Unwind
Bitcoin’s collapse alongside conventional danger belongings uncovered the crypto’s failure to function a geopolitical hedge, regardless of years of positioning as “digital gold.”
CoinGlass liquidation knowledge revealed $998.33 million in lengthy positions worn out over 24 hours, with Bitcoin accounting for $440.19 million as cascading margin calls accelerated throughout skinny Asian buying and selling hours.
Galaxy Digital’s Alex Thorn noted that “Bitcoin isn’t fairly doing the factor that it’s constructed to do, at the very least in actual time,” whereas Bitunix analyst Dean Chen observed that “amongst crypto-native traders, it’s more and more framed as a geopolitical hedge and a non-sovereign retailer of worth.”
“However, for the broader market, Bitcoin remains to be largely traded as a high-beta danger asset,” he concluded.
Derivatives markets paint an more and more bearish image for the months forward.
Sean Dawson of Derive.xyz warned that “rising geopolitical tensions between the US and Europe—notably round Greenland—increase the danger of a regime shift again right into a higher-volatility surroundings, a dynamic not at present mirrored in spot costs.”
Options knowledge reveals sturdy put open curiosity concentrated throughout the $75K-$85K strikes for the June 26 expiry, with Dawson noting that “from an choices perspective, the outlook stays mildly bearish via mid-year. Traders are paying a premium for draw back safety.“
Bloomberg Intelligence strategist Mike McGlone delivered an much more dire evaluation, warning that Bitcoin’s lack of ability to carry long-term averages in 2025 suggests the worth may finally drop as little as $10,000.
Duke University’s Campbell Harvey additionally claimed in educational analysis that Bitcoin “is hardly a safe-haven asset,” noting its correlation with gold has damaged down utterly.
Institutional Demand Offers Potential Floor
Despite the bearish technical image, not all analysts have turned pessimistic.
MEXC knowledge confirmed that on January 16 alone, Bitcoin ETFs added 1,474 BTC, accounting for $1.48 billion in weekly inflows, whereas 36,800 BTC left exchanges.
These are indicators of sturdy institutional demand and tightening provide that might restrict draw back.
In truth, as Cryptonews noted just lately, the prospect of Trump turning again on the tariff resolution is high, with 86%, and that may significantly profit Bitcoin after February 1.
Historical tariff patterns present 86% probability that Trump reverses Europe tariffs earlier than February 1, as Bitcoin’s 24/7 markets put together to sign coverage shifts first.#Trump #Tariffs #Europe #Bitcoinhttps://t.co/eGxEedfe06
— Cryptonews.com (@cryptonews) January 19, 2026
Speaking with Cryptonews, Bitfinex analysts additionally famous that “Bitcoin spot volumes stay regular, funding charges are near impartial, and there was no spike in trade inflows that may sign reactive promoting,” suggesting the selloff displays macro-linked noise relatively than a crypto-specific catalyst.
For now, whether or not Bitcoin’s present consolidation represents capitulation or merely the calm earlier than a deeper storm stays the central query going through crypto markets as February approaches.
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