Bitcoin braces as Trump imposes 25% tariffs on Europe over Greenland
Crypto journalist
Anas Hasan
Crypto journalist
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US President Donald Trump has announced tariffs on eight European countries starting February 1 and threatened a 10% tariff of up to 25% until June until Denmark agrees to sell Greenland.
Bitcoin faces renewed volatility as geopolitical tensions foreshadow a rate shock in October 2025, sparking $19 billion in liquidity.
Trump announced via Truth Social that he expects immediate tariffs until Denmark, Norway, Sweden, France, Germany, England, the Netherlands and Finland reach a full and comprehensive agreement on the purchase of Greenland.
The move sparked emergency EU meetings and unanimous condemnation from European leaders, with British Prime Minister Keir Starmer calling tariffs on allies “absolutely wrong” and France's Emmanuel Macron warning that “no intimidation or intimidation will affect us”.
European leaders are united against an unprecedented threat
The tariff announcement sparked an unusual diplomatic crisis, with EU ambassadors calling emergency meetings on Sunday afternoon.
European Commission President Ursula von der Leyen declared the EU's full partnership with Denmark and Greenland, saying “tariffs would damage transatlantic relations and risk a dangerous downward spiral.”
Sweden's Prime Minister Ulf Kristerson stated that Trump's request is an issue that requires a common response from the European Union, saying clearly, “We will not allow ourselves to hide.”
Finland's President Alexander Stubb, who was previously considered an ally of Trump in common golf interests, stressed that “issues between partners are best resolved through dialogue, not pressure.”
Norwegian Prime Minister Jonas Gahr Store agreed, saying that “threats have no place between partners.”
Even Trump supporter Nigel Farage criticized the tariffs, saying, “We don't always agree with the US government and we certainly don't on this issue. These tariffs hurt us.”
Spanish Prime Minister Pedro Sanchez has warned that the US invasion of Greenland will make Putin the happiest person on earth, legitimizing Russia's invasion of Ukraine and “death knell for NATO”.
The European Union's foreign policy chief, Kaja Kallas, echoed this sentiment, saying that “China and Russia should have a field day because they are using division between partners.”
Danish Foreign Minister Lars Løkke Rasmussen also expressed surprise at Trump's announcement following what he described as “constructive meetings” with Vice President JD Vance and Secretary of State Marco Rubio earlier in the week.
In light of Trump's threats against Greenland, German MP Manfred Weber suggested ending the recently negotiated EU-US trade deal, saying “0% tariffs on US goods must end”.
Meanwhile, thousands of Greenlanders and Danes protested, holding banners reading “Greenland is for Greenlanders” and “Out of Greenland's hands.”
Bitcoin Recovery Clouds Tariff Uncertainty
Bitcoin currently moves from a range-bound movement between $94,000 and $97,000 to $95,000 after weeks.
Market participants remain cautious following Trump's latest geopolitical developments, adding new uncertainty to an already weak recovery.
The crypto has avoided revisiting lower support levels in 2026, although gains are slim amid persistent geopolitical risks.
Rather than experiencing sharp rallies or deep crashes, CryptoQuant founder Ki Young-joo expects it to be “just boring sideways for the next few months.”
Capital flows into Bitcoin have dried up. Liquidity channels are now very diverse, so the timing of entry is meaningless, he said.
Despite the lack of buying pressure, large holders, including American banks, continue to accumulate Bitcoin, with no clear signs of capital yet.
Speaking to Cryptonews, John Glover, Chief Investment Officer at Lead, suggests that Bitcoin remains in Wave IV of the bull cycle, with an ending target between $71,000 and $84,000.
“Confirmation of which way to go will come from a break and close above $104,000, which confirms we're now starting Wave V, or a break below $80,000, which means we'll move into the low $70s before going higher,” Glover explained.
The October tariff situation creates concern
Trump's aggressive tariff strategy has already devastated crypto markets when he imposed 100% tariffs on Chinese imports by October 2025.
Bitcoin fell below $105,000 and $19 billion was used in 24 hours unscathed, forcing 1.6 million traders to move into liquidity, about 87% of which were long positions.
Open demand for Bitcoin futures fell more than 30% before recovering to $114,000 days later.
The current threat of tariffs targets America's closest European allies rather than an enemy, creating unprecedented uncertainty in the transatlantic relationship.
Markets now await a Supreme Court decision on the legality of the tariffs, along with escalating geopolitical tensions over Greenland, Venezuela and broader global trade policy.
These combined factors threaten to repeat October's volatility despite Bitcoin's recent price stability.
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