US President Donald Trump introduced escalating tariffs on eight European nations, beginning on February 1, threatening 10% levies that may rise to 25% by June, till Denmark agrees to promote Greenland.
Bitcoin faces renewed volatility as geopolitical tensions mirror the October 2025 tariff shock that triggered $19 billion in liquidations.
Trump declared by way of Reality Social that Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face quick tariffs “till such time as a Deal is reached for the Full and Complete buy of Greenland.”
The transfer sparked emergency EU conferences and unified condemnation from European leaders, with UK Prime Minister Keir Starmer calling tariffs on allies “fully improper” whereas France’s Emmanuel Macron warned “no intimidation nor risk will affect us.“
France is dedicated to the sovereignty and independence of countries, in Europe and elsewhere. This guides our selections. It underpins our dedication to the United Nations and to its Constitution.
It’s on this foundation that we assist, and can proceed to assist Ukraine…— Emmanuel Macron (@EmmanuelMacron) January 17, 2026
European Leaders Unite In opposition to Unprecedented Risk
The tariff announcement triggered a unprecedented diplomatic disaster as EU ambassadors convened emergency conferences on Sunday afternoon.
European Fee President Ursula von der Leyen emphasised that “tariffs would undermine transatlantic relations and danger a harmful downward spiral,” whereas declaring full EU solidarity with Denmark and Greenland.
Swedish Prime Minister Ulf Kristersson said bluntly, “We is not going to let ourselves be blackmailed,” characterizing Trump’s calls for as an EU-wide situation requiring a collective response.
Finland’s President Alexander Stubb, beforehand thought of a Trump ally by shared golf pursuits, urged that “amongst allies, points are greatest resolved by dialogue, not by stress.“
Norway’s Prime Minister Jonas Gahr Støre agreed, stressing “threats haven’t any place amongst allies.“
Even Trump supporter Nigel Farage criticized the tariffs, admitting “we don’t all the time agree with the US authorities and on this case we definitely don’t. These tariffs will damage us.“
We don’t all the time agree with the US authorities and on this case we definitely don’t. These tariffs will damage us.
If Greenland is weak to malign influences, then have one other have a look at Diego Garcia. https://t.co/z0r0IUlD6I— Nigel Farage MP (@Nigel_Farage) January 17, 2026
Spain’s Prime Minister Pedro Sanchez delivered maybe the sharpest rebuke, warning {that a} US invasion of Greenland “would make Putin the happiest man on earth” by legitimizing Russia’s Ukraine invasion and spelling “the loss of life knell for Nato.“
EU overseas coverage chief Kaja Kallas additionally echoed this sentiment, noting “China and Russia should be having a area day” as they “profit from divisions amongst Allies.“
Denmark’s International Minister Lars Løkke Rasmussen additionally expressed shock at Trump’s announcement following what he described as “constructive conferences” with Vice President JD Vance and Secretary of State Marco Rubio earlier within the week.
Given Trump’s threats over Greenland, German MEP Manfred Weber instructed halting the not too long ago negotiated EU-US commerce deal, stating, “The 0% tariffs on US merchandise should be placed on maintain.“
In the meantime, 1000’s protested throughout Greenland and Denmark, carrying banners studying “Greenland is for Greenlanders” and “Palms Off Greenland.“
Tariff Uncertainty Clouds Bitcoin Restoration
Bitcoin at present trades round $95,000 after weeks of range-bound motion between $94,000 and $97,000.
Market members stay cautious following Trump’s newest geopolitical escalation, which provides contemporary uncertainty to an already fragile restoration.
The crypto has prevented revisiting decrease assist ranges in 2026, although beneficial properties stay skinny amid persistent geopolitical dangers.
CryptoQuant founder Ki Younger Ju expects Bitcoin to enter “simply boring sideways for the subsequent few months” fairly than experiencing sharp rallies or deep crashes.
Capital inflows into Bitcoin have dried up.
Liquidity channels are extra numerous now, so timing inflows is pointless. Establishments holding long-term killed the outdated whale-retail promote cycle. MSTR received't dump any important chunk of their 673k BTC.
Cash simply rotated to shares and… pic.twitter.com/Ha866TP857— Ki Younger Ju (@ki_young_ju) January 8, 2026
“Capital inflows into Bitcoin have dried up. Liquidity channels are extra numerous now, so timing inflows is pointless,” he said, noting cash has “rotated to shares and glossy rocks.“
Regardless of a scarcity of shopping for stress, massive holders, together with US banks, proceed to build up Bitcoin, with no clear indicators of capitulation but.
Talking with Cryptonews, John Glover, Chief Funding Officer at Ledn, suggests Bitcoin stays in Wave IV of its bull cycle, with completion targets between $71,000 and $84,000.
“Affirmation as to which path we’re following will come from both a break and shut above $104,000 which might affirm we are actually beginning Wave V, or a break beneath $80,000, which implies a transfer to the low $70s earlier than we head greater,” Glover defined.
October Tariff Precedent Raises Considerations
Trump’s aggressive tariff technique beforehand devastated crypto markets in October 2025 when 100% tariffs on Chinese language imports triggered one in every of historical past’s largest single-day liquidation occasions.
Bitcoin plunged beneath $105,000 as $19 billion in leveraged positions unwound inside 24 hours, forcing 1.6 million merchants into liquidations, with practically 87% being lengthy positions.
Open curiosity in Bitcoin futures collapsed by greater than 30% throughout that selloff earlier than recovering above $114,000 days later.
The present tariff risk targets America’s closest European allies fairly than adversaries, creating unprecedented uncertainty about transatlantic relations.
Markets now face potential Supreme Courtroom rulings on the legality of tariffs alongside escalating geopolitical tensions over Greenland, Venezuela, and broader international commerce coverage.
These mixed components threaten to duplicate October’s volatility regardless of Bitcoin’s current value stability.
The submit Bitcoin Braces as Trump Slaps 25% Tariffs on Europe Over Greenland appeared first on Cryptonews.