Trump’s Tariffs on Europe Trigger Bitcoin Slide and Market Volatility

US President Donald Trump announced a new tariff plan targeting several European nations, affecting markets globally. The tariffs, starting at 10% on February 1, 2026, could rise to 25% by June if negotiations fail. Countries affected include Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK.

Market Reactions

Stocks and cryptocurrencies experienced declines as investors moved towards safer assets like gold.
Bitcoin dropped approximately 3%, trading in the low-$90,000 range.
Liquidations on crypto platforms reached $750 million to $875 million due to selling pressure, increasing volatility.

European Response

European governments expressed strong opposition, with potential countermeasures that could impact US exports.
Trade policy tensions have resurfaced, influencing political dynamics.

Crypto Market Dynamics

Traders quickly adjusted positions, reducing exposure to volatile assets.
Bitcoin mirrored stock movements, indicating its role as a risk asset during the event.
Some analysts suggest inflationary expectations from policy shocks may eventually increase demand for scarce assets like Bitcoin.

Trading Adjustments

Market makers tightened spreads, and liquidity pools thinned amid volatility.
Institutional desks paused trading to reassess risks; retail traders closely monitored market alerts.
Hedge desks rebalanced towards commodities and planned for potential retaliatory measures.