Daily Market Update: Crypto and Stock Futures Drop as EU Prepares Massive Tariff Response

TLDR

• Bitcoin plunged 3.6% to $92,000 on Monday as Trump announced 10% tariffs on eight European nations starting February 1
• Crypto long positions worth $750 million were liquidated in four hours as trade war fears gripped markets
• Gold futures climbed to all-time high of $4,667 per ounce while silver crossed $93 for the first time ever
• European Union is preparing $108 billion in counter-tariffs against US goods in response to Trump’s threats
• Stock futures declined as investors moved to safe haven assets amid escalating transatlantic trade tensions

Bitcoin suffered a sharp drop on Monday morning following President Donald Trump’s weekend announcement of new tariffs on European countries. The cryptocurrency fell from $95,450 to below $92,000 in just a few hours.

The 3.6% decline wiped out nearly $3,500 in value. Bitcoin was trading at $92,580 at the time of reporting.

The sell-off triggered widespread liquidations across cryptocurrency markets. Data from Coinglass showed over $750 million in long positions were liquidated within four hours.

Total liquidations over 24 hours exceeded $860 million. The cascade effect intensified selling pressure across digital assets.

Trump announced over the weekend that 10% tariffs would begin February 1 on imports from eight European countries. The affected nations include Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom and Norway.

The president tied the tariffs to disputes over Greenland. He warned the tariff rate would rise to 25% by June without an agreement.

Gold and Silver Hit Record Prices

Traditional safe haven assets surged as investors fled riskier investments. Gold futures reached an all-time high of $4,667 per ounce.

Silver futures also broke records, climbing above $93 per ounce for the first time in history. Stock futures fell as markets processed the trade conflict escalation.

The European Union is now discussing $108 billion in retaliatory tariffs on American products. Eight European nations released a joint statement declaring “Europe will not be blackmailed.”

Danish Prime Minister Mette Frederiksen led the unified European response. Officials from Germany and Sweden voiced similar resistance to the tariff threats.

Markets Enter Risk-Off Mode

Andri Fauzan Adziima from Bitrue told reporters the tariffs are sparking trade war fears. He said Bitcoin is behaving like a tech stock and suffering from economic uncertainty.

Jeff Mei from BTSE exchange noted the market unease stems from threats against close US allies. He warned traders are preparing for worst-case scenarios.

Mei said institutional investors may reduce their risk exposure when US markets open. Some analysts predict markets could drop to April 2025 levels.

US Treasury Secretary Scott Bessent defended the administration’s approach on NBC’s Meet the Press. He stated that Europeans project weakness while the US projects strength.

Thousands protested in Denmark and Greenland over the weekend. Demonstrators in Nuuk marched to the US embassy chanting Greenland’s indigenous name.

The Supreme Court has yet to rule on Trump’s authority to impose tariffs under a 1977 emergency law. Trump has called a potential loss of this power a “terrible blow” to the nation.

The court heard arguments in November about the legality of the president’s tariff methods. Both conservative and liberal justices questioned the use of emergency powers for trade policy.

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