Bitcoin slipped below USD 92'000 during Asian trading on Monday, recording a 3.6 percent decline within 24 hours. The correction followed an announcement by US President Donald Trump over the weekend that the United States would impose tariffs on eight European countries.
According to analytics platform Coinglass, the market wiped out long positions worth USD 525 million within 60 minutes. The announcement on Saturday предусматривает that, starting February 1, the US will impose 10 percent tariffs on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. By June 1, the tariffs are set to rise to 25 percent unless an agreement is reached on the “purchase of Greenland”. Other crypto assets suffered even steeper losses: Ethereum fell by 4.9 percent, while Solana dropped by 8.6 percent.
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Risk aversion dominates the markets
The tariff threats hit Bitcoin at an unfavorable moment. The cryptocurrency had only reached a yearly high of USD 97'694 on January 14 before stabilizing around USD 95'000 over the weekend. The sudden decline occurred in parallel with losses in US equity indices, while commodities such as gold and silver reached new record highs.
Liquidations occur when leveraged traders can no longer meet their margin requirements. This leads to the automatic closing of positions, which can amplify price movements during periods of thin liquidity. Accordingly, the USD 525 million in liquidations mainly affected long positions held by traders who had been betting on further price increases.
EU prepares countermeasures
The European Union is moving on two fronts. While diplomatic channels with Washington are being intensified, EU ambassadors are simultaneously preparing retaliatory measures. At an emergency meeting on Sunday in Brussels, representatives agreed on a package of counter-tariffs worth EUR 93 billion (USD 107.7 billion) on US imports. An emergency summit is scheduled for Thursday.
Danish Prime Minister Mette Frederiksen made it clear: “Europe will not be blackmailed.” French President Emmanuel Macron described the tariff threats as “unacceptable” and added: “No intimidation or threat will influence us.” Even Italian Prime Minister Giorgia Meloni, who traditionally maintains good relations with Trump, called the move a “mistake”.
Eight European countries issued a joint statement warning that “tariff threats undermine transatlantic relations and risk a dangerous downward spiral”. The US Supreme Court is expected to decide in the coming weeks whether Trump may use the International Emergency Economic Powers Act to impose tariffs. However, the justices have expressed skepticism regarding the administration’s use of this law.
Historical parallels to previous trade conflicts
Bitcoin has reacted to trade conflicts in the past. In April 2025, the so-called “Liberation Day” tariffs led to a massive liquidation event. In October 2025, the BTC price fell significantly after the US imposed 100 percent tariffs on Chinese imports. These patterns suggest that the cryptocurrency is particularly vulnerable to sudden trade shocks.
Analysts are divided on the long-term implications. The pessimistic view is that sharp tariff increases often trigger a “risk-off” environment that weighs on risky assets such as cryptocurrencies. By contrast, the optimistic perspective argues that high tariffs are inflationary. If the purchasing power of fiat currencies such as the euro and the dollar declines, this could stimulate institutional demand for Bitcoin as a hedge against currency debasement.
Outlook for volatile weeks
In the short term, analysts expect further volatility. If EU counter-tariffs are activated, liquidity could push BTC below USD 90'000. As a result, the trading range between USD 94'000 and USD 97'000, in which Bitcoin had recently oscillated, could be breached to the downside.
Institutional forecasts for 2026 vary widely. JPMorgan projects USD 170'000, while Standard Chartered names USD 150'000 as a target. Tom Lee of Fundstrat expects USD 150'000 to USD 200'000 by early 2026, with a rise to USD 250'000 by year-end. However, these estimates assume that the trade conflict does not escalate further.
