Bitcoin Stumbles as US-EU Tensions Escalate Over Greenland

Bitcoin suffered a sharp sell-off on Monday as escalating trade tensions between the United States and Europe triggered a broad risk-off reaction across global markets.

The move came after President Donald Trump threatened new tariffs on several European countries unless negotiations over Greenland move forward, rattling investors across asset classes.

Within hours, Bitcoin slid to below $93,000 according to CoinMarketCap. The rapid drop wiped out leveraged positions at scale, with more than $750 million in long liquidations recorded in just four hours. Total liquidations over the past day climbed past $860 million, underscoring the speed and intensity of the move.

While crypto struggled, traditional safe havens surged. Precious metals extended their rally, continuing a clear divergence from digital assets. Gold futures pushed to fresh all-time highs above $4,667 per ounce, while silver crossed $93 per ounce for the first time on record, reflecting a flight to safety as geopolitical risk intensified. Equity futures also traded lower, reinforcing the defensive tone.

Tariffs and geopolitics reignite market anxiety

The sell-off followed Trump’s announcement of proposed tariffs starting at 10% on imports from Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway, with rates set to rise to 25% by June if talks fail. The move is tied to broader tensions surrounding Greenland and marks a renewed escalation in US-EU trade relations.

European officials responded swiftly. French President Emmanuel Macron urged the EU to deploy its so-called “anti-coercion instrument,” a mechanism designed to counter economic pressure from external powers. At the same time, EU policymakers are weighing the activation of €93 billion ($108 billion) in retaliatory tariffs that had previously been delayed.

Market strategists warned that the rhetoric alone is enough to shift sentiment. Analysts noted that Bitcoin continues to trade more like a high-risk technology asset during periods of macro stress, making it vulnerable when uncertainty spikes. The combination of liquidation cascades and geopolitical headlines amplified downside pressure, even as longer-term fundamentals remain unchanged.

For now, traders appear focused on worst-case scenarios, with fears that prolonged trade disputes could drive further de-risking once US markets fully open. Until clarity emerges on whether tariffs are implemented or negotiations resume, volatility is likely to remain elevated across both crypto and traditional markets.

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