Cryptocurrencies experienced a sharp decline as risk assets faltered and demand for safe-haven assets increased. This market reaction followed US President Donald Trump’s proposal of new tariffs on eight European countries. Bitcoin, the leading cryptocurrency, dropped by 3.6 per cent to below $US92,000 on Monday morning. Other digital tokens faced even steeper losses, with Ether, the second-largest digital asset, decreasing by 4.9 per cent, and Solana falling by 8.6 per cent.
Trump’s announcement over the weekend involved imposing a 10 per cent tariff on goods from eight European nations, starting on February 1. The tariffs are slated to increase to 25 per cent in June if a deal for the “purchase of Greenland” is not reached. This announcement triggered a decline in US equity-index futures as trading commenced on Monday. Concurrently, safe-haven assets such as gold and silver surged to record highs, reflecting investor unease. European leaders have criticised the President’s comments and may halt approval of last year’s trade agreement.
Digital assets had shown promise at the start of the year, recovering from a challenging end to 2025. Bitcoin had climbed to nearly $US98,000 on January 14, bolstered by strong inflows into US-listed exchange-traded funds. According to Richard Galvin, co-founder of hedge fund DACM, this rise was “a rebound from oversold levels driven by tax-loss selling and general capitulation coming into year-end.” However, the new tariff concerns have slowed this momentum, with gold’s record highs suggesting a broader “risk-off move.”
CoinGlass data indicates that approximately $US600 million in bullish cryptocurrency bets were liquidated in the past 24 hours. According to Rachael Lucas, an analyst at BTC Markets, traders are eyeing $US90,000 as the next potential level if current support fails. Lucas notes that bulls are looking to institutional demand as a possible floor. BTC Markets is a cryptocurrency exchange allowing users to buy, sell, and trade digital currencies. The platform aims to provide a secure and user-friendly experience for both beginner and experienced traders.
