The price of Bitcoin experienced a sharp decline of nearly $4,000 during an evening sell-off following President Donald Trump’s announcement of impending tariffs on Europe on Saturday.
At approximately 6 p.m. EST, a substantial wave of selling hit the cryptocurrency market, resulting in forced liquidations across Bitcoin and various altcoins.
This abrupt decline eliminated more than $500 million in leveraged long positions in just one hour, with total crypto long liquidations exceeding $525 million during the same timeframe, according to market analysis.
As of now, the price of Bitcoin has stabilized around $92,600, although it remains down approximately 2.5% over the last 24 hours.
This sell-off coincides with increasing macroeconomic uncertainty following Trump’s statement regarding new tariffs on European countries set to take effect starting February 1.
The proposed measures include a 10% tariff on goods imported from eight nations: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, which could escalate to 25% by June 1 if no agreement is reached.
Trump’s connection of these measures to U.S. interests in Greenland has further strained transatlantic relations.
European leaders have responded robustly against the proposed tariffs. In a joint statement, the involved countries cautioned that such threats could spiral into a “dangerous downward spiral,” while Danish Prime Minister Mette Frederiksen emphasized that “Europe will not be blackmailed.”
Reports of protests in Denmark and Greenland over the weekend have added to the political ramifications of this scenario.
The core issue involves Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) to characterize trade deficits as a national emergency, thus facilitating broad tariff implementation, including a baseline 10% levy on most imports.
A ruling against Trump may necessitate the government to refund over $100 billion in tariffs already collected, potentially disrupting funding assumptions related to defense and budgetary plans, as reported by Reuters and the Tax Foundation.
If the court validates Trump’s authority, the current tariffs would remain intact, and subsequent measures—such as the proposed duties on European goods associated with Greenland—could advance. Importers are reportedly preparing for both scenarios, with many opting to keep shipments “unliquidated” to safeguard potential refund claims.
At present, Bitcoin is trading approximately 3% lower than its seven-day high of $95,468, fluctuating above its seven-day low of $92,284. The asset has a circulating supply of 19.98 million BTC, with a maximum supply limit of 21 million.
Currently, the global Bitcoin market capitalization is around $1.85 trillion, reflecting a decrease of about 2% for the day, while 24-hour trading volume has reached $32 billion.
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