Bitcoin Unstable as Trump Tries for Greenland
Bitcoin is falling back toward $90K this week after news of Trump's latest trade war has set investors worrying.
Quick overview
- Bitcoin (BTC) dropped 2.27% to $92,879 following President Trump's tariff announcements regarding Greenland.
- The cryptocurrency market is experiencing heightened volatility, with Bitcoin's recent gains largely erased and other tokens like Ethereum (ETH) also declining.
- Analysts warn that Bitcoin could potentially fall to $80K as trade tensions escalate, indicating a bearish trend ahead.
- Investor sentiment remains cautious, with many holding off on purchases as the market faces uncertainty and potential regulatory changes.
Bitcoin (BTC) dropped 2.27% on Monday after news broke that President Donald Trump was making an attempt to gain Greenland from Denmark.
Bitcoin is now down to $92,879 (BTC/USD) on Monday because of Trump’s plans to levy tariffs against European powers in an attempt to gain Greenland. He announced new tariffs for February and June that would increase goods considerably in the coming months. As a result, Bitcoin and the wider cryptocurrency market has been thrown into a state of heightened volatility.
BTC/USDIt appears that Bitcoin may be headed into a bearish downtrend for now on the new tariff developments. Investors might hold onto their money as they wait out the next trade war, and this one could be particularly bitter. It seems impossible that Denmark would give up Greenland after 300 years, and Trump is not likely to back down quickly after his public declaration.
Crypto Market Slides on Tariff News
Bitcoin has lost much of its recent gains and is only up 1.82% for the week now. As the BTC rate slips closer to $90K, investors will become fearful and will likely abandon the coin. As Bitcoin is falling, so too are many other crypto tokens, including Ethereum (ETH), which dipped 3.42% over the last 24 hours.
We have seen similar declines from XRP, BNB, Solana, Tron, and many others. The situation may not improve for a while, as the trade war is likely to be a lengthy and bitter one.
Now, analysts are warning that the market could fall further, with Bitcoin potentially slipping to $80K as trade tensions escalate. The BTC is in a precarious position already, after getting out of months of bearish trends. The coin has not been stable for long, and investors have fought to keep the price above $90K for the last couple of weeks.
Bitcoin and the wider cryptocurrency market will need a reprieve if they are going to keep from slipping very quickly. Even though regulatory bodies are drafting new legislation for the crypto market, that may not be enough to turn consumer sentiment around. 2025 ended with the crypto market in a bad place, far below the October highs of the market.
While 2026 started off well, if Bitcoin and the other leading cryptos can be so quickly derailed this soon into the year, that could bode poorly for the coming months, and many of those BTC price predictions may be shot down as the market remains volatile and bearish.
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