Bitcoin Market Braces for Impact as Trump Imposes 25% Tariffs on European Nations Over Greenland Dispute
The cryptocurrency market, particularly Bitcoin, is facing renewed volatility as US President Donald Trump announced the imposition of 25% tariffs on eight European countries, effective February 1. This move is in response to Denmark’s refusal to sell Greenland to the United States. The affected nations include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. The tariffs are set to rise to 25% by June if a deal is not reached.
European Leaders Unite Against Unprecedented Threat
The tariff announcement has triggered an extraordinary diplomatic crisis, with EU ambassadors convening emergency meetings on Sunday afternoon. European Commission President Ursula von der Leyen emphasized that the tariffs would undermine transatlantic relations and risk a dangerous downward spiral, while declaring full EU solidarity with Denmark and Greenland. Swedish Prime Minister Ulf Kristersson stated that the EU will not let itself be blackmailed, characterizing Trump’s demands as an EU-wide issue requiring a collective response.
France’s President Emmanuel Macron warned that no intimidation nor threat will influence the EU’s stance on the matter. Macron tweeted, “France is committed to the sovereignty and independence of nations, in Europe and elsewhere. This guides our choices. It underpins our commitment to the United Nations and to its Charter.” He also stated that France will continue to support Ukraine, emphasizing the importance of upholding international law and respecting national sovereignty.
Tariff Uncertainty Clouds Bitcoin Recovery
Bitcoin is currently trading around $95,000, after weeks of range-bound movement between $94,000 and $97,000. Market participants remain cautious following Trump’s latest geopolitical escalation, which adds fresh uncertainty to an already fragile recovery. CryptoQuant founder Ki Young Ju expects Bitcoin to enter “just boring sideways for the next few months” rather than experiencing sharp rallies or deep crashes. Ju noted that capital inflows into Bitcoin have dried up, and liquidity channels are more diverse now, making it pointless to time inflows.
October Tariff Precedent Raises Concerns
Trump’s aggressive tariff strategy previously devastated crypto markets in October 2025, when 100% tariffs on Chinese imports triggered one of the largest single-day liquidation events in history. Bitcoin plunged below $105,000 as $19 billion in leveraged positions unwound within 24 hours, forcing 1.6 million traders into liquidations, with nearly 87% being long positions. Open interest in Bitcoin futures collapsed by more than 30% during that selloff before recovering above $114,000 days later.
For more information, visit the original source: https://cryptonews.com/news/bitcoin-braces-as-trump-slaps-25-tariffs-on-europe-over-greenland/
