Cryptocurrency Markets Tumble Following Trump's Greenland Tariff Announcement
Cryptocurrency markets experienced a sharp decline on Monday as risk assets retreated across global markets. The selloff came directly after United States President Donald Trump announced new tariffs targeting eight European allies over Greenland-related issues.
Major Cryptocurrencies See Significant Losses
Bitcoin, the world's largest cryptocurrency, dropped 3.6% in early trading on January 19, 2026. The digital asset slipped below the $92,000 level during the session. Ethereum, the second-largest token, fell even more sharply with a 4.9% decline. Solana experienced the steepest drop among major cryptocurrencies, shedding 8.6% of its value.
According to data from CoinMarketCap, the total cryptocurrency market capitalization stood at $3.12 trillion at the time of writing. This represented a 2.65% decrease from previous levels. Trading volume over the past 24 hours reached $93.88 billion as investors reacted to the news.
Massive Liquidation of Bullish Bets
Data from CoinGlass revealed approximately $600 million in bullish cryptocurrency bets were liquidated during the past 24 hours. The uncertainty created by Trump's tariff announcement drove this massive liquidation event. Investors rapidly moved toward safer assets as geopolitical tensions escalated.
In just one hour alone, traders reported $514 million in long position liquidations. The cryptocurrency market lost approximately $85 billion in total value during the selloff. Bitcoin maintained its dominant position with 59.1% of the total market share, while Ethereum held 12.4%.
Individual Token Performance Details
Bitcoin eventually settled at $92,292.75 after recovering slightly from its opening fall. The token showed a 2.8% decline over 24 hours with a market capitalization of $1.84 trillion. Trading volume surged 79.35% to $29.29 billion as activity intensified.
Ether traded at $3,195.84, representing a 3.13% decrease. Its market capitalization stood at $385.72 billion with trading volume jumping 88.11% to $20.41 billion. Tether, the dollar-linked stablecoin, showed minimal movement at $0.9996 as investors sought relative safety.
Binance's token traded at $917.34 with a 2.97% decline, while XRP fell 5.14% to $1.94. Both tokens experienced increased trading volumes as market participants adjusted their positions.
Trump's Greenland Tariffs Create Market Uncertainty
President Trump announced over the weekend that he would impose a 10% tariff on goods from eight European countries starting February 1. The tariffs would increase to 25% in June unless European nations agreed to a "purchase of Greenland" deal. This unexpected move immediately impacted financial markets worldwide.
US equity-index futures slumped as trading began on Monday. Meanwhile, traditional safe-haven assets like gold and silver surged to record levels. European leaders strongly criticized Trump's announcement, threatening to halt approval of a trade agreement negotiated last year.
Market Analysts Weigh In on the Situation
Richard Galvin, co-founder of hedge fund DACM, noted that cryptocurrency markets had enjoyed a promising start to 2026. Digital assets were recovering from a difficult end to 2025 that included a brutal October selloff. Bitcoin had risen to nearly $98,000 on January 14, supported by strong inflows into US-listed exchange-traded funds.
"The recent rally represented a rebound from oversold levels driven by tax-loss selling and general capitulation coming into year-end," Galvin explained. He added that the latest tariff concerns have "pumped the brakes" on that recovery. Gold hitting all-time highs confirms the selling represents "more a risk-off move than anything crypto-specific."
Rachael Lucas, an analyst at BTC Markets, identified $90,000 as a critical level for Bitcoin. Traders see this as the next support level if current levels fail. "Bulls point to institutional demand as a potential floor," Lucas noted, suggesting that large investors might provide stability even during market turbulence.
Broader Market Implications
The cryptocurrency market continues to demonstrate high sensitivity to external economic factors and government policies. This latest episode highlights how geopolitical developments can trigger rapid price movements in digital assets. The substantial liquidations underscore the inherent volatility of cryptocurrency markets, even as institutional participation grows.
Market participants will closely monitor developments regarding Trump's tariff plans and the European response. The situation remains fluid, with potential for further market movements as details emerge about the Greenland-related negotiations.
