Cryptocurrencies fell sharply on Monday as US President Donald Trump’s threat to impose new tariffs on eight European countries rattled risk assets and boosted demand for safe-haven assets. Bitcoin slid 3.6% to below $92,000, while other major tokens also saw a sharp decline.Ether, the second-largest digital asset, dropped 4.9%, and Solana fell 8.6% as traders moved to reduce exposure amid global market uncertainty. The downturn came as US equity-index futures also slipped, while gold and silver surged to record levels, according to Bloomberg.
Trump announced over the weekend that he would impose a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1, rising to 25% in June unless a deal is reached on a proposed US purchase of Greenland. The comments drew rebuke from European leaders, who signaled they could halt approval of a trade agreement struck last year.Digital assets had begun 2026 on a positive note, recovering from a weak end to 2025. Bitcoin had risen to just under $98,000 on January 14, supported by strong inflows into US-listed exchange-traded funds tracking the token. Richard Galvin, co-founder of hedge fund DACM, said the early-year gains reflected “a rebound from oversold levels driven by tax-loss selling and general capitulation coming into year-end.”He added that the current selloff is “more a risk-off move than anything crypto-specific,” with gold’s record highs confirming investors are seeking safer assets. CoinGlass data show that about $600 million of bullish cryptocurrency bets were liquidated in the past 24 hours.Traders now see $90,000 as the next key support for Bitcoin if current levels fail, while analysts point to institutional demand as a potential floor. Rachael Lucas, an analyst at BTC Markets, said the market remains cautious but observed that “institutional inflows could help stabilise prices if volatility continues.”
