Bitcoin held steady near $92,000 on Tuesday, following a sell-off on Monday, as traders tread carefully amid renewed trade tensions sparked by President Donald Trump’s threat to impose tariffs on eight European nations unless the US can buy Greenland.
With Wall Street cash markets closed for a holiday on Monday, futures and currencies felt the first shocks overnight, setting a cautious tone for the start of the Asian trading day.
Market Snapshot (early Asia hours):
Bitcoin: $92,360, down 0.4%
Ether: $3,183, down 0.8%
XRP: $1.96, up 0.2%
Total crypto market cap: $3.21 trillion, down 0.3%
Nasdaq and S&P 500 futures were down roughly 1% as investors trimmed exposure to US risk assets. Asian equities also slipped, with MSCI’s broad Asia-Pacific gauge down 0.44% and Japan’s Nikkei off 0.8%. European futures pointed to a softer open as traders digested Trump’s tariff timeline.
The dollar remained under pressure, US Treasury yields climbed — the 10-year hit 4.265%, a four-month high — while gold stayed near record levels and the Swiss franc attracted fresh haven demand.
Bitcoin Trades Calmly Amid Macro Turbulence
Despite the headlines, Bitcoin’s price action looked relatively calm. The cryptocurrency hovered near $92,000 after last week’s rally, with analysts framing recent swings more as a leverage reset than a shift in trend.
Bitfinex analysts noted that Bitcoin had briefly tested the $94,000–$95,000 resistance zone, clearing out short positions in what they called the biggest reset in nearly 100 days. Aggressive spot buying helped the rebound, and long-term holders were selling less, with realized profits dropping to about 12,800 BTC per week — far below previous cycle highs.
“For a more durable rally, market structure needs to shift so that long-term holder supply begins to outweigh short-term selling,” the analysts said. Historically, similar phases in 2022–2023 and 2024–2025 preceded stronger and more sustained Bitcoin recoveries.
European Response to Trump’s Tariff Threat
The broader market mood was driven by Trump’s announcement that the US would impose a 10% tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain — rising to 25% on June 1 if no deal is reached.
European officials have pushed back, with the EU considering retaliation. Options include reactivating a suspended €93 billion tariff package and using the bloc’s Anti-Coercion Instrument, a tool designed to counter high-pressure trade tactics.
All eyes now turn to Davos, where Trump is scheduled to meet global business leaders on Wednesday during the World Economic Forum. Markets remain on edge as trade and policy risks set the tone for the start of the week.
