Bitcoin Dips 3% As Trump Tariff Threat Rattles Global Markets

Crypto reporter

Shalini Nagarajan

Crypto reporter

Shalini Nagarajan

Since part of the group

January 2024

About the author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory changes in the cryptocurrency sector.

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Last Updated:

January 19, 2026

Bitcoin slipped 3% to around $92,000 in early Asian trade on Monday as traders eased concerns after President Donald Trump threatened to impose new tariffs on eight European countries, linked to the push for tariffs on US ownership of Greenland.

Trump said the US would impose an additional 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain from February 1 and raise it to 25% on June 1 if no deal is reached.

European officials denounced the move as coercion as the threat of tariffs exacerbated tensions already straining transatlantic relations.

Market overview

Bitcoin: $92,506, down 2.6% Ether: $3,203, down 3% XRP down: $1.96, down 4.7% Total crypto market cap: $3.21 trillion, down 2.7%.

Holliday's liquidation futures lead to risk-off activity.

The shock first hit global markets in derivatives as US financial markets were closed for the holiday. US stock futures slipped, with S&P 500 futures down 0.7% and Nasdaq futures down 1.0% in early Asian hours.

Asian stocks slipped as risk sentiment widened, with Japan's Nikkei down 1 percent and MSCI's broadest Asia-Pacific index outside Japan down 0.1 percent. Europe also looked softer, with Euro Stoxx 50 and DAX futures both down 1.1%, as traders priced in fresh trade uncertainty.

Currencies echoed the move. The dollar weakened against traditional havens, easing 0.3% against the yen and 0.2% against the Swiss franc, while the euro steadied after earlier declines.

When bitcoin liquidators joke your speed

Goods are moved in another way. Gold jumped 1.5% in a race for safety, while silver hit an all-time high, while Brent and U.S. crude both slipped as investors weighed what the global U.S.-European trade war meant for growth and demand.

Crypto traders felt the macro jolt in real time as Bitcoin opened over the weekend and in Asia on Monday. As prices eased, leveraged positions were not wound up, with some market trackers suggesting heavy long liquidity during the slide.

EU diplomats in Brussels said ambassadors had agreed to step up efforts to dissuade Trump as they prepare to retaliate if his actions continue.

Options include reactivating a package of tariffs on 93 billion euros of US imports and, more controversially, considering an anti-dumping tool that could limit the bloc's access to tenders, investments or trade in services.

Strategists warn about the panic of capital flight

Strategists pointed to the larger market risk behind the headlines. Deutsche Bank said European investors own about $8 trillion of U.S. bonds and stocks, and warned that changes to these holdings could be more “weapons of capital” than trade flows and would be more disruptive than tariffs.

The calendar adds more indicators. China is set to report economic growth figures, the Bank of Japan will meet later this week with investors looking for signs of tightening, and US data later in the week will shape expectations for when the Federal Reserve may cut again. Leaders head to Davos as Greenland dispute heats up.