Crypto Journalist
Anas Hassan
Crypto Journalist
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US President Donald Trump announced escalating tariffs on eight European nations, starting on February 1, threatening 10% levies that will rise to 25% by June, until Denmark agrees to sell Greenland.
Bitcoin faces renewed volatility as geopolitical tensions mirror the October 2025 tariff shock that triggered $19 billion in liquidations.
Trump declared via Truth Social that Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face immediate tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
The move sparked emergency EU meetings and unified condemnation from European leaders, with UK Prime Minister Keir Starmer calling tariffs on allies “completely wrong” while France’s Emmanuel Macron warned “no intimidation nor threat will influence us.“
European Leaders Unite Against Unprecedented Threat
The tariff announcement triggered an extraordinary diplomatic crisis as EU ambassadors convened emergency meetings on Sunday afternoon.
European Commission President Ursula von der Leyen emphasized that “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 bluntly, “We will not let ourselves be blackmailed,” characterizing Trump’s demands as an EU-wide issue requiring a collective response.
Finland’s President Alexander Stubb, previously considered a Trump ally through shared golf interests, urged that “among allies, issues are best resolved through discussion, not through pressure.“
Norway’s Prime Minister Jonas Gahr Støre agreed, stressing “threats have no place among allies.“
Even Trump supporter Nigel Farage criticized the tariffs, admitting “we don’t always agree with the US government and in this case we certainly don’t. These tariffs will hurt us.“
Spain’s Prime Minister Pedro Sanchez delivered perhaps the sharpest rebuke, warning that a US invasion of Greenland “would make Putin the happiest man on earth” by legitimizing Russia’s Ukraine invasion and spelling “the death knell for Nato.“
EU foreign policy chief Kaja Kallas also echoed this sentiment, noting “China and Russia must be having a field day” as they “benefit from divisions among Allies.“
Denmark’s Foreign Minister Lars Løkke Rasmussen also expressed surprise at Trump’s announcement following what he described as “constructive meetings” with Vice President JD Vance and Secretary of State Marco Rubio earlier in the week.
Given Trump’s threats over Greenland, German MEP Manfred Weber suggested halting the recently negotiated EU-US trade deal, stating, “The 0% tariffs on US products must be put on hold.“
Meanwhile, thousands protested across Greenland and Denmark, carrying banners reading “Greenland is for Greenlanders” and “Hands Off Greenland.“
Tariff Uncertainty Clouds Bitcoin Recovery
Bitcoin currently trades 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.
The crypto has avoided revisiting lower support levels in 2026, though gains remain thin amid persistent geopolitical risks.
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.
“Capital inflows into Bitcoin have dried up. Liquidity channels are more diverse now, so timing inflows is pointless,” he stated, noting money has “rotated to stocks and shiny rocks.“
Despite a lack of buying pressure, large holders, including US banks, continue to accumulate Bitcoin, with no clear signs of capitulation yet.
Speaking with Cryptonews, John Glover, Chief Investment Officer at Ledn, suggests Bitcoin remains in Wave IV of its bull cycle, with completion targets between $71,000 and $84,000.
“Confirmation as to which path we’re following will come from either a break and close above $104,000 which would confirm we are now starting Wave V, or a break below $80,000, which means a move to the low $70s before we head higher,” Glover explained.
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 history’s largest single-day liquidation events.
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.
The current tariff threat targets America’s closest European allies rather than adversaries, creating unprecedented uncertainty about transatlantic relations.
Markets now face potential Supreme Court rulings on the legality of tariffs alongside escalating geopolitical tensions over Greenland, Venezuela, and broader global trade policy.
These combined factors threaten to replicate October’s volatility despite Bitcoin’s recent price stability.
