Bitcoin plunged to a six-day low on Monday amid a sudden US-EU trade escalation. Markets moved after disputes over Greenland and new tariffs shook risk appetite.
Over $870 million of crypto positions were liquidated in the past 24 hours. Longs accounted for nearly $790 million of those losses and about 250,000 traders were liquidated.
Donald Trump said U.S. national security depended on “complete acquisition” of Greenland, heightening tensions. Eight EU countries sent troops to the island, and the U.S. announced 10% tariffs on those eight starting February 1.
The EU held an emergency meeting, and French President Macron reportedly pressed to activate an anti-coercion tool called the “trade baooka”. These developments coincided with volatility across asset classes.
U.S. spot markets were closed for MLK Day while Asian markets slid on Monday morning. U.S. futures fell, with Nasdaq futures down about 1.3%.
Bitcoin traded just above $92,500 during the decline. Meanwhile, gold rose to another all-time high, and a tweet captured the moment with the line “Gold vs Bitcoin right now 😂”.
