Bitcoin Price Today: Drops to Around $92,500 Amid Trump Greenland Tariff Threats and Crypto Regulatory Setback
Bitcoin (BTC) experienced a notable decline in early Asian trading on Monday, retreating from recent gains as escalating geopolitical tensions and delays in U.S. crypto legislation pressured risk assets.
The leading cryptocurrency traded down approximately 2-3% to levels near $92,500, following President Donald Trump’s announcement of potential tariffs on several European nations tied to his long-standing interest in acquiring Greenland. This development has heightened global risk aversion, impacting speculative investments like digital assets.
Geopolitical Tensions Drive Risk-Off Sentiment in Crypto Markets
President Trump recently declared plans to impose 10% import tariffs starting February 1 on goods from countries including Denmark, France, Germany, the United Kingdom, Norway, Sweden, Finland, and the Netherlands. These duties could escalate to 25% by June 1 unless an agreement is reached for the U.S. to purchase Greenland, an autonomous Danish territory.
European leaders have strongly opposed the move, describing it as coercive and warning of a potential “dangerous downward spiral” in transatlantic relations. Discussions of retaliatory measures from the EU, including activation of anti-coercion tools, have added to market uncertainty.
While tariffs and geopolitical issues don’t directly target cryptocurrencies, they erode investor appetite for high-risk assets. Traders have shifted toward traditional safe havens like gold, contributing to Bitcoin’s pullback despite a roughly 5% increase the previous week.
The broader implications include concerns over strained NATO alliances and echoes of prior U.S. actions, further dampening enthusiasm for volatile markets.
Massive Liquidations Hit Crypto as Leverage Unwinds
The sell-off triggered significant liquidations across derivatives platforms, with data indicating over $850-870 million in positions closed in the past 24 hours. The majority involved long positions (bullish bets), with Bitcoin accounting for a large share—around $229 million wiped out.
Other major coins saw substantial losses: Ether (ETH) liquidations reached approximately $154 million, while Solana (SOL) and others followed suit. This wave of forced selling amplified the downward pressure, erasing much of the prior week’s mild recovery.
Regulatory Uncertainty Adds to Headwinds
Adding to the cautious mood, a key U.S. Senate effort to establish a comprehensive regulatory framework for cryptocurrencies faced a setback. The Senate Banking Committee postponed discussions on the CLARITY Act after Coinbase CEO Brian Armstrong withdrew support, citing concerns over provisions that could harm consumers, stifle competition, and impose restrictions on stablecoin rewards and tokenized assets.
This delay has frustrated industry participants hoping for clearer rules in 2026, contributing to fragile sentiment.
Altcoins Follow Bitcoin Lower in Broad Decline
Most major altcoins mirrored Bitcoin’s losses:
- Ether (ETH): Down around 3-4% to approximately $3,200
- XRP: Declined over 4%, slipping below $2
- Solana (SOL): Fell sharply by 6-7%
- Cardano (ADA) and BNB: Dropped 7-8% and around 2-3%, respectively
- Memecoins like Dogecoin (DOGE) and $TRUMP saw declines of 6-7%
These movements reflect the interconnected nature of the crypto market, where Bitcoin’s performance often dictates broader trends.
Outlook for Bitcoin and Crypto in 2026
Despite the current dip, Bitcoin remains well above key psychological levels and has shown resilience in recent months. Analysts continue monitoring geopolitical developments, potential tariff resolutions, and any progress on U.S. crypto legislation for signs of reversal.
Investors are advised to stay informed on evolving macro events, as risk sentiment could shift rapidly.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.