Crypto Market Plunges as EU Trade Tensions Escalate Over Greenland Dispute

The crypto market is currently facing uncertainties as the tension between the United States and the European Union grows. The tension started on Saturday after President Trump announced his plans to impose tariffs on goods from several major European countries due to disputes over Greenland.

Hours after the announcement, investors started to sell off their risky assets, with cryptocurrencies being hit the hardest. Before the announcement was made, the Bitcoin price traded close to $95,000 but dropped to dropped to around $91,000 and, as of the time of writing, has had a little recovery as it trades at $92,991.

Trump’s 10% Tariffs on European Goods Cause Crypto Market Tension

According to the Truth Social post President Trump shared, the new tariff will 10% on goods from eight European countries, including Germany, France, and the United Kingdom, starting from the 1st of February. President Trump also added that the rate could rise to 25% in June if no deal is reached over Greenland.

In response to the announcement, the European leaders criticized the move, calling it unfair and harmful to their long-standing relations with the U.S. Additionally, they are making new plans to carry out a retaliatory move, showing that the dispute could last for months.

Also Read: Trump Unveils $2,000 Tariff Dividend, Could Arrive Through Tax Cuts

The crypto market reacted very strongly to the news, as Coinglass recorded a 24-hour liquidation of over $874 million. Bitcoin led the liquidation, as $223.55 million was wiped out in long positions and $9.71 million in short positions.

Ethereum, Solana, XRP, DOGE, and other altcoins also suffered liquidation above $20 million. So far, ASTER has suffered the highest price crash with a 24-hour low of 11.93%. In all, this price crash, just like the one that happened in November 2025, has shown how sensitive cryptocurrencies are to political and economic events.

In conclusion, the eight European countries that were affected by the tariffs have sent military personnel to Greenland to protect their interests, showing that the conflict has strategic as well as economic implications.

Investors are now closely looking forward to any new development from Brussels and Washington as the European leaders plan emergency meetings this week to decide on their next steps, which could include imposing counter-tariffs or restricting trade services.

Also Read: Bitcoin Crashes Below $105k as Trump’s 100% China Tariff Triggers Huge Sell-Off