Trump’s Greenland Tariff Threat Wipes $780M from Crypto Markets; Gold Hits Record $4,680
Bitcoin slid to $92,500 and gold hit an all-time high of $4,680 as Trump threatened 25% tariffs on European allies over Greenland acquisition demands.
Bitcoin surrendered the $93,000 level in Asian trading Monday, shedding 2.6% and erasing weekend gains as markets reacted to President Trump’s ultimatum to European allies regarding the acquisition of Greenland. The sell-off triggered a $780 million liquidation cascade across the crypto ecosystem, marking the sector’s most violent repricing since October.
The Liquidation Event
Leverage was flushed from the system with brutal efficiency. According to market data, over $525 million in long positions were liquidated within a single 60-minute window as Bitcoin slid from highs near $97,000 to a low of $92,500. The move caught late-weekend bulls off guard, wiping out $750 million in levered longs over the last 24 hours.
The catalyst was a Saturday post on Truth Social, where President Trump announced a 10% tariff on eight European nations, including Denmark, Norway, Sweden, France, and Germany, effective February 1. The President explicitly linked the trade penalty to his administration’s stalled bid to purchase Greenland, warning that levies would escalate to 25% by June 1 unless a deal is reached.
“Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland have journeyed to Greenland, for purposes unknown. This is a very dangerous situation… This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland.” . President Donald Trump via Truth Social
Risk-Off Correlation Deepens
The divergence between Bitcoin and traditional safe-haven assets has widened significantly. While digital assets plummeted, spot gold surged to a fresh all-time high of $4,680 per ounce, and silver reclaimed $93. This price action reinforces a troubling trend for crypto proponents: despite the "digital gold" narrative, Bitcoin continues to trade in high correlation with risk-on tech stocks rather than defensive commodities during geopolitical shocks.
The Institutional View
This pullback revives fears of a "Crypto Winter" scenario similar to 2025’s trade-war-induced volatility. With the February 1 tariff implementation date less than two weeks away, market makers are pricing in sustained volatility. The threat of a 25% escalation by June forces institutions to re-evaluate risk exposure to assets that have historically underperformed during prolonged trade disputes.
