Bitcoin price fell by almost $4,000 as Europe hinted at retaliatory measures against US President Donald Trump, who threatened new trade tariffs unless negotiations could begin over Greenland. The BTC drop coincided with the trade war wiping out approximately $110 billion from the crypto market, sending BTC down by over 2.5%. As of 1:16 a.m. EST, BTC is trading at $92,440, according to a Coinbase chart on TradingView.
EU–US Trade War Shakes the Crypto Market
The cryptocurrency market experienced a significant downturn, with over $110 billion wiped out in the last 24 hours. Approximately $787 million in long positions were liquidated during this period, bringing the total 24-hour liquidations to over $870 million, according to Coinglass data. Of this amount, over $223 million was attributed to BTC-related long positions.
This market reaction followed US President Donald Trump's revival of global fears of trade tariffs by imposing duties on several major European nations concerning Greenland. Trump had previously threatened to impose up to 25% tariffs on several European countries, stating that the duties would remain in place until a deal to sell Greenland to the United States was reached.
🇺🇸🇬🇱 Trump threatens new tariffs on countries opposed to Greenland takeover.
Starting on February 1, 2026, 10% tariffs would be imposed on the following countries, rising to 25% on June 1, 2026:
🇩🇰 Denmark
🇳🇴 Norway
🇸🇪 Sweden
🇫🇷 France
🇩🇪 Germany
🇬🇧 UK
🇫🇮 Finland
🇳🇱 The… pic.twitter.com/ZbCAT3iB3A— Mario Nawfal (@MarioNawfal) January 17, 2026
European nations have consistently rejected Trump’s demand for the Danish territory, with France reportedly preparing retaliatory economic measures against Washington. Trump has repeatedly asserted the importance of Greenland to U.S. national security and demanded its cession to the U.S.
Following the refusal to sell Greenland, Trump stated that Denmark had failed to address a Russian threat emanating from Greenland. He remarked, “NATO has been telling Denmark, for 20 years, that ‘you have to get the Russian threat away from Greenland…’ Denmark has been unable to do anything about it. Now it is time, and it will be done.”
“NATO has been telling Denmark, for 20 years, that “you have to get the Russian threat away from Greenland.” Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!!” – President Donald J. Trump pic.twitter.com/ZyFh9OsNsn
— The White House (@WhiteHouse) January 19, 2026
In response to the renewed US-EU trade war, gold futures surged to record highs of $4,680 per ounce, according to Google Finance. Silver futures also experienced a significant increase, rising above $93 per ounce for the first time in history.
Bitcoin Price Pulls Back As Selling Pressure Intensifies
After breaking above the ascending triangle and rallying to over $97,000, the BTC price has encountered selling pressure at this resistance level. Consequently, the Bitcoin price has retreated back into the triangle pattern, and is currently trading near the upper boundary of the pattern and the 20-day Exponential Moving Average (EMA).
Adding to the bearish sentiment, the Relative Strength Index (RSI) has declined from approximately 68 to 51.36 and continues to fall, indicating sustained selling pressure in the Bitcoin market.
BTC Price Outlook: Is The Drop A Warning Sign?
The cryptocurrency market, particularly Bitcoin, is experiencing a sustained drop as traders seek refuge in safe-haven assets due to the trade war developments. According to BTC/USD Chart analysis, the Bitcoin price remains above the 50-day Simple Moving Average (SMA), which is currently acting as strong short-term support at $90,301.
With trade threats persisting and BTC attempting to hold above $90,000 over the past two weeks, further declines are possible. If Bitcoin's price breaches the 50-day SMA, the asset risks a drop to the lower boundary around $89,000.
However, institutional buying activity could provide a positive influence in maintaining the price above this support level. Michael Saylor has indicated that Strategy will soon execute another Bitcoin purchase, as the company aims to hold over 3% of the asset’s total supply. Saylor posted "Bigger Orange" on X, a phrase he has previously used to announce new Bitcoin acquisitions.
₿igger Orange. pic.twitter.com/HI47hMCnui
— Michael Saylor (@saylor) January 18, 2026
Following its acquisition of 13,627 BTC last week, Strategy now holds a total of 687,410 BTC, acquired for $51.8 billion at an average price of $75,353 per Bitcoin.