The anticipated volatility due to the latest developments on the US-EU trade war finally arrived in crypto as BTC, alongside all altcoins, plunged hard as Asian and some futures markets opened.
Somewhat expected, liquidations are on the rise, with over $870 million wrecked in the past 24 hours. Naturally, longs are responsible for the lion’s share, accounting for nearly $790 million. The total number of liquidated traders has skyrocketed to just shy of 250,000, according to data from CoinGlass.
US-EU Trade War Developments
Recall the latest developments on the trade war front between the so-called allies. US President Donald Trump has insisted that his country’s national security relies on the “complete acquisition” of Greenland, which is under Denmark’s control.
Following weeks of building tension, eight countries from the EU sent a handful of soldiers to the island for a reconnaissance mission. Trump responded immediately with a new set of 10% tariffs against all eight, starting from February 1.
The EU held an emergency meeting, while French President Macron reportedly pushed for the activation of a so-called anti-coercion instrument known as a “trade baooka,” which has never been used before and would limit America’s access to European Markets.
Market Reaction
The US spot markets will remain closed today as it’s MLK Day. However, Asian markets slid on Monday morning, and so did the greenback against the yen and the Swiss franc. US futures also dropped by up to 1.3% in the case of Nasdaq futures.
As mentioned above, BTC’s price headed south earlier this morning, currently struggling to remain above $92,500. At the same time, gold exploded once again to yet another all-time high.
Gold vs Bitcoin right now 😂
I love this industry pic.twitter.com/wviLVKR0uj
— Travis Connors (@TravConnors) January 18, 2026