Bitcoin Risks $60K Slide as Trump-EU Trade War Over Greenland Intensifies
Bitcoin shed 3% as the EU froze a key trade deal in response to Trump’s Greenland tariff ultimatum, putting $60K targets back in play.
Geopolitical Brinkmanship Liquidates $870M
Bitcoin surrendered the $95,000 level, tumbling to $92,400 within hours as President Trump issued a stark ultimatum to eight NATO allies: sell Greenland to the U.S. or face punishing tariffs. The threat, a 10% levy on imports starting February 1, escalating to 25% by June 1, triggered an immediate risk-off pivot in global markets, wiping out over $870 million in leveraged crypto positions.
The immediate trigger… stems from the escalation of trade confrontation between the US and EU.
The targeted nations include Denmark, Germany, France, and the UK. While Trump claimed a tentative “framework” for a resolution late Wednesday, the market damage was already priced in. Volatility remains elevated as traders hedge against the collapse of these fragile negotiations.
EU Retaliates: July Trade Deal Frozen
Brussels moved swiftly to counter the economic coercion. The European Parliament has formally suspended ratification of the July 2025 trade agreement, a pact originally designed to eliminate tariffs on U.S. industrial exports. Bernd Lange, chair of the Parliament’s trade committee, confirmed that ratification is impossible while the tariff threat looms.
The EU is also reportedly weighing the activation of its “Anti-Coercion Instrument,” which could impose fines on U.S. tech giants and restrict American access to European public procurement markets. This escalation risks a protracted trade conflict, a scenario historically correlated with liquidity drains in risk assets like Bitcoin.
The Bear Case: Liquidity Crunch Targets $67K
Market structure has weakened significantly. Analysts warn that if the trade dispute deepens, Bitcoin could decouple from equities and test the $67,000–$74,000 support block. This range represents the liquidity floor established during the Q4 2025 consolidation. A breach here exposes the $60,000 psychological level, particularly if the U.S. Dollar Index (DXY) strengthens on safe-haven flows.
