Cryptocurrencies experienced a significant decline as risk assets weakened and demand for safe havens increased following US President Donald Trump’s announcement of new tariffs on eight European nations. Bitcoin experienced a decline of up to 3.6 percent, dropping below $92,000 on Monday morning, with other cryptocurrencies facing even sharper losses. Ether, the second-largest digital asset, experienced a decline of 4.9 per cent, while Solana saw a drop of 8.6 per cent.
Over the weekend, Trump announced plans to impose a 10 percent tariff on goods imported from eight European nations beginning February 1. This tariff is set to escalate to 25 percent in June unless an agreement is reached regarding the “purchase of Greenland.” US equity-index futures experienced a decline as trading commenced on Monday, while safe-haven assets like gold and silver reached new highs.
The President’s remarks have sparked backlash from European leaders, who are now ready to put a stop to the ratification of the trade deal established last year. Digital assets kicked off the year on a high note, rebounding from the dismal close of 2025, where they struggled to recover from a severe selloff in October. On January 14, Bitcoin surged to nearly $98,000, fueled by robust inflows into a selection of US-listed exchange-traded funds associated with the cryptocurrency. “That was seen as a rebound from the oversold levels driven by tax-loss selling and general capitulation coming into year-end,” stated Richard Galvin. The recent surge in tariff concerns has put a halt to that, while gold reaching all-time highs indicates that the selling is “more a risk-off move than anything crypto-specific,” Galvin noted.
Data from CoinGlass reveals that approximately $600 million in bullish positions on cryptocurrencies were liquidated over the last 24 hours. Traders are eyeing $90,000 as the next target should the current support level falter, “while bulls point to institutional demand as a potential floor,” stated Rachael Lucas.