Daily Market Update: Bitcoin and Stock Futures Fall as EU Plans Trade Retaliation

TLDR

• Bitcoin fell 3.6% from $95,450 to below $92,000 on Monday following Trump’s announcement of tariffs on European nations
• Liquidations totaled $750 million in four hours as trade war concerns swept through cryptocurrency markets
• Gold futures reached record $4,667 per ounce and silver topped $93 as investors sought safety
• EU officials are discussing $108 billion in retaliatory tariffs on US products in response to Trump’s threats
• Stock futures dropped as markets reacted to escalating trade tensions between America and Europe

Cryptocurrency markets experienced heavy selling on Monday after President Donald Trump announced plans for new tariffs on European imports. Bitcoin dropped 3.6% in a matter of hours.

The digital asset declined from $95,450 to just under $92,000 on Coinbase. The price had partially recovered to $92,580 by the time of publication.

The rapid decline triggered massive liquidations across crypto exchanges. Coinglass data revealed $750 million in long positions were wiped out within four hours.

Total liquidations reached over $860 million in a 24-hour period. The selling pressure spread throughout the cryptocurrency market.

Trump revealed over the weekend that 10% tariffs would take effect February 1 on goods from eight European countries. Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom and Norway face the new levies.

The president connected the tariffs to ongoing tensions regarding Greenland. He stated the tariff percentage would increase to 25% by June without a deal.

Safe Haven Assets Break Records

Gold and silver prices surged to historic levels as market participants moved away from risk assets. Gold futures hit an unprecedented $4,667 per ounce.

Silver futures crossed $93 per ounce for the first time ever. Stock futures also fell during the Monday trading session.

European leadership responded strongly to the tariff announcement. French President Emmanuel Macron called for activating the EU’s “anti-coercion instrument.”

This mechanism, referred to as a “trade bazooka,” could limit US access to European markets. The European Union is evaluating $108 billion in counter-tariffs on American goods.

Eight European countries issued a unified statement rejecting the tariff threats. The statement declared “Europe will not be blackmailed.”

Danish Prime Minister Mette Frederiksen praised the coordinated European response. Finance and government officials from Germany and Sweden backed the position.

Analysts Assess Market Impact

Research lead Andri Fauzan Adziima from Bitrue said the tariff announcement is creating risk-off sentiment. He observed Bitcoin trading like a technology stock during periods of economic stress.

Jeff Mei, chief operations officer at BTSE exchange, highlighted the unusual nature of threatening close allies. He said the situation is causing widespread market anxiety.

Mei suggested institutional investors might reduce exposure when US trading begins. Some market watchers are considering scenarios where prices fall to April 2025 levels.

Treasury Secretary Scott Bessent appeared on NBC’s Meet the Press to discuss the tariff strategy. He argued the policy demonstrates American strength versus European weakness.

Protests erupted in Denmark and Greenland throughout the weekend. Thousands gathered in Nuuk, Greenland’s capital, marching to the US embassy.

Demonstrators chanted “Kalaallit Nunaat,” the island’s name in the Greenlandic language. Former NATO head Anders Fogh Rasmussen criticized Trump’s approach as speaking like a “gangster.”

The Supreme Court has not issued a ruling on Trump’s tariff authority under a 1977 emergency law. The court heard oral arguments on the matter in November.

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