Cryptocurrencies fell sharply on Monday as US President Donald Trump’s threat to impose new tariffs on eight European countries shook risk assets and boosted demand for safe haven assets. Bitcoin fell 3.6% to below $92,000, while other major tokens also saw a sharp decline.Ether, the second-largest digital asset, fell 4.9% and Solana fell 8.6% as traders took steps to reduce exposure amid global market uncertainty. The slowdown came as U.S. stock index futures also fell, while gold and silver rose to record levels, according to Bloomberg.
Trump announced over the weekend that he would impose a 10% tariff on products from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1, rising to 25% in June unless a deal is reached on a proposed purchase of Greenland by the United States. The comments drew a rebuke from European leaders, who signaled they could halt approval of a trade deal reached last year.Digital assets had started 2026 on a positive note, recovering from a weak finish in 2025. Bitcoin had risen to just under $98,000 on January 14, supported by strong inflows into US-listed exchange-traded funds that track the token. Richard Galvin, co-founder of hedge fund DACM, said early-year gains reflected “a rebound from oversold levels driven by tax-loss selling and general capitulation as the year comes to a close.”He added that the current sell-off is “more of a measure of risk aversion than something specific to cryptocurrencies,” and gold’s all-time highs confirm that investors are looking for safer assets. Data from CoinGlass shows that around $600 million in bullish bets on cryptocurrencies were liquidated in the last 24 hours.Traders now see $90,000 as the next key support for Bitcoin if current levels fail, while analysts point to institutional demand as a potential floor. BTC Markets analyst Rachael Lucas said the market remains cautious, but noted that “institutional inflows could help stabilize prices if volatility continues.”