Bitcoin fell below $93,000 Monday as investors retreated from risk assets following President Donald Trump's weekend announcement of 10% tariffs on eight European nations over Greenland.
The cryptocurrency dropped as much as 3.6% to $92,000, while gold surged to record highs near $4,690 as safe-haven demand intensified.
Ethereum declined 4.9% and Solana shed 8.6%, triggering roughly $600 million in leveraged position liquidations across derivatives markets.
What Happened
Trump said Saturday he would impose 10% tariffs starting February 1 on Denmark, Norway, Sweden, France, Germany, the United Kingdom, Netherlands and Finland until reaching a "complete and total purchase of Greenland."
The levies would increase to 25% by June 1 if no agreement materializes, marking a sharp escalation in tensions with NATO allies.
European currencies including the euro and pound gained against the dollar despite the tariff threats, while the Swiss franc posted its largest daily rise in a month.
The EU entered discussions on implementing up to €93 billion ($108 billion) in retaliatory tariffs on American products, according to multiple reports.
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Why It Matters
The selloff underscored Bitcoin's continued correlation with traditional risk assets rather than serving as a safe-haven investment during geopolitical shocks.
Gold's rally to all-time highs while Bitcoin declined highlighted the divergence between precious metals and cryptocurrency during periods of heightened uncertainty.
Bloomberg analyst Mike McGlone suggested the Bitcoin-to-gold ratio could fall toward 10x rather than rebounding to 30x, reflecting gold's outperformance.
Analysts identified $90,000 as critical support for Bitcoin, warning further weakness could trigger deeper corrections after the cryptocurrency briefly topped $97,500 last week.
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