Bitcoin slid nearly $3,500 on Monday as European officials signaled retaliation against US President Donald Trump’s latest tariff threats tied to Greenland.

Bitcoin fell 3.6% in a matter of hours, dropping from about $95,450 to just under $92,000 on Coinbase, before modestly recovering to around $92,580.

Liquidations spike as price drops

The move flushed leveraged traders.

Roughly $750 million in long positions were liquidated in four hours, pushing total 24-hour liquidations above $860 million.

Gold and silver hit record highs

While bitcoin fell, precious metals rallied.

Gold futures jumped to a record $4,667 per ounce, and silver futures rose above $93 per ounce for the first time.

Europe threatens retaliation

Over the weekend, Trump said the US would impose 10% tariffs starting Feb. 1 on imports from several European countries, including Denmark, Sweden, France, Germany, the Netherlands and Finland.

He said the rate would rise to 25% by June if no agreement is reached, and also named the United Kingdom and Norway.

French President Emmanuel Macron urged the EU to activate its “anti-coercion instrument,” described as a “trade bazooka,” that could restrict US access to EU markets.

The European Union is also weighing 93 billion euros ($108 billion) in previously delayed retaliatory tariffs.

Analysts point to risk-off mood

Bitrue research lead Andri Fauzan Adziima said the tariff dispute was fueling trade war fears and a risk-off tone.

BTSE COO Jeff Mei said traders were considering a worst-case scenario and that institutions could de-risk if they view Trump’s threats as serious:

“Right now, traders are thinking about the worst-case scenario, in which markets could plunge to April 2025 levels. Once the US market opens, it’s possible that institutional investors may move to de-risk their holdings if they think Trump’s threats are serious.”