Bitcoin Falls Below $92,000 as Tariff Fears Slam Crypto

Cryptocurrencies fell sharply on Monday as risk assets slipped and haven demand surged following U.S. President Donald Trump’s announcement of new tariffs on eight European countries. Bitcoin slid as much as 3.6% to below $92,000, while Ether, the second-largest digital asset, fell 4.9% and Solana dropped 8.6%.

Trump said over the weekend that a 10% tariff on goods from these European nations would start on February 1, rising to 25% in June unless a deal is reached involving the “purchase of Greenland.” The news rattled equity-index futures and boosted safe-haven assets, with gold and silver surging to record highs. European leaders responded critically, threatening to halt approvals for the trade agreement finalized last year.

Digital assets had been starting 2026 with promise after a difficult end to 2025. Bitcoin reached just under $98,000 on January 14, fueled by inflows into U.S.-listed Bitcoin ETFs. Richard Galvin, co-founder of hedge fund DACM, described that move as “a rebound from oversold levels driven by tax-loss selling and general capitulation at year-end.” He added that the latest tariff concerns have slowed that momentum, noting that gold hitting all-time highs signals “this is more a risk-off move than anything crypto-specific.”

CoinGlass data show that roughly $600 million in bullish cryptocurrency bets were liquidated in the past 24 hours. Traders are watching $90,000 as the next critical support level, while analysts like Rachael Lucas of BTC Markets note that institutional demand could provide a potential floor.

The recent volatility highlights how sensitive cryptocurrencies have become to macroeconomic and geopolitical events, reinforcing that Bitcoin’s movements are increasingly correlated with traditional markets.

The Weekly Dispatch