Bitcoin’s price has slid nearly 5% this week as US President Donald Trump’s pursuit for Greenland revived the “Sell America” trade.
The top crypto plunged below $91,000 on Tuesday as the $3.2 trillion crypto market dropped 2.2%. Now analysts warn that the price could drop to $75,000 — or even lower.
“While markets appear calm on the surface, macro risks are building,” Sean Dawson, research head at Derive.xyz, said in an investor note shared with DL News.
“Rising geopolitical tensions between the US and Europe — particularly around Greenland — raise the risk of a regime shift back into a higher-volatility environment, a dynamic not currently reflected in spot prices,” Dawson said.
Bitcoin’s selloff comes as there is widespread chatter on Wall Street of a “sell America” trade. This is where investors dump US stocks, bonds, and dollars as Trump threatens European allies with tariffs over his campaign to take control of Greenland.
The US dollar slid on Monday, with the euro gaining 0.4 per cent against the US currency.
Bitcoin and altcoins’ price drop on Tuesday would suggest cryptocurrencies are part of that trade.
At the same time, gold, which is seen as a safe haven asset, set a new high of $4,725 per ounce
World leaders have widely condemned Trump’s gambit for the world’s biggest island.
“Tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” European Council President António Costa and Ursula von der Leyen said in a joint statement.
Brussels has also threatened to retaliate against Washington if Trump follows through with his threats.
Traders play defence
Derivatives positioning data shows that traders are anticipating that Bitcoin’s price will drop 17% to $75,000 by June, Dawson said.
“From an options perspective, the outlook remains mildly bearish through mid-year,” he said. “Traders are paying a premium for downside protection.”
“Against a backdrop of persistent geopolitical uncertainty, crypto markets appear more risk-averse than in previous cycles, despite historically low realised volatility,” he said.
Similarly, Bloomberg Intelligence strategist Mike McGlone said that Bitcoin’s inability to hold long-term averages in 2025 is a warning sign that the price could drop as low as $10,000.
To be sure, not everyone is bearish on Bitcoin.
Better macroeconomic conditions and improving economic outlook are now “feeding into crypto,” analysts David Brickell and Chris Mills of the London Crypto Club said in their weekly newsletter.
Bitcoin “acts as the ultimate hedge, given its borderless, decentralised, “safe-haven” characteristics.”
Crypto market movers
Bitcoin is down 2.3% over the past 24 hours, trading at $90,878.
Ethereum is down 3.6% past 24 hours at $3,090
