Cryptocurrencies tumbled as risk assets slipped and investors turned to safer options after US President Donald Trump announced new tariffs on eight European countries.
While gold and silver hit new record highs, Bitcoin dropped as much as 3.6% to below $92,000 Monday morning, with other coins seeing even larger losses.
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Ethereum fell 4.9%, and Solana dropped 7.4%. Overall, the sell-off wiped out about 2.84% of the total crypto market, according to CoinMarketCap.
Data from CoinGlass shows that over $871 million in leveraged positions were liquidated in the past 24 hours, the vast majority being long positions ($787.64 million). Bitcoin accounted for nearly $230 million of these, while Ether saw more than $155 million liquidated.
According to DeFi researcher 0xNobler, major crypto players, including Coinbase, Binance, Wintermute, and a wallet linked to a Trump insider, took advantage of the situation and drove prices even lower, selling over 80,270 Bitcoins worth around $35 billion in just the past few hours.
Trump Threatens Europe. Markets React
In an unprecedented escalation over Greenland, President Trump announced Saturday that he would impose 10% tariffs on goods from eight European countries starting February 1, rising to 25% if no deal is reached by June.
European leaders held an emergency meeting on Sunday to discuss possible responses. French President Emmanuel Macron reportedly urged the EU to activate its “anti-coercion” measures, which could include restricting US access to European markets, imposing export controls, or taking other counteractions.
The EU is also considering moving forward with €93 billion in retaliatory tariffs on the U.S., which had been paused after a tentative trade deal was reached last July.
Trump’s new tariff announcement reignited risk-off sentiment in capital markets and raised concerns about a broader trade war. Gold and silver surged to new highs, while stock market indices and cryptocurrencies plummeted, erasing last week’s gains.
Why This Matters
The sell-off shows just how exposed cryptocurrencies remain to global shocks, with millions wiped out in hours.
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People Also Ask:
Gold and silver are considered “safe-haven” assets. When risky investments like crypto or stocks fall, investors often buy precious metals to protect value.
Leverage allows traders to borrow money to amplify their trades. If the market moves against them, their positions can be automatically closed, resulting in losses.
Large exchanges, hedge funds, and institutional investors—such as Coinbase, Binance, and Wintermute—can significantly impact crypto prices through large trades.
Cryptocurrencies are sensitive to global events. Tariffs, regulations, or political tensions can trigger rapid sell-offs, increased volatility, and price swings.