The cryptocurrency market experienced a significant downturn following an announcement by President Donald Trump regarding new tariffs on European nations. Bitcoin, the world's largest cryptocurrency, saw a sharp evening sell-off, plunging nearly $4,000 from approximately $95,500 to an intraday low of $91,935 within a two-hour span. This sudden drop triggered a wave of forced liquidations, wiping out over $500 million in leveraged long positions in just 60 minutes, with total crypto long liquidations exceeding $525 million.

The sell-off coincided with heightened macro uncertainty stemming from President Trump's declaration that the U.S. would implement new tariffs on specific European nations starting February 1. The proposal outlines a 10% tariff on goods originating from eight countries: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. This tariff is slated to rise to 25% by June 1 if no resolution is reached. President Trump explicitly linked these measures to U.S. efforts to secure Greenland, further escalating already strained transatlantic relations.

European leaders swiftly condemned the proposed tariffs. In a joint statement, the affected nations cautioned that these tariff threats risk initiating a “dangerous downward spiral,” with Danish Prime Minister Mette Frederiksen emphatically stating that Europe “will not be blackmailed.” Reports indicated protests in Denmark and Greenland over the weekend, underscoring the political fallout from the announcement. In related market movements, gold prices concurrently climbed to a new all-time high of approximately $4,670.

Adding to the economic uncertainty affecting the bitcoin price, the U.S. Supreme Court is poised to deliver a crucial ruling on a case examining President Trump's authority to impose sweeping tariffs under emergency powers. This decision holds significant implications for future trade policy and federal revenues. At the core of the case is Trump’s application of the International Emergency Economic Powers Act (IEEPA) to declare trade deficits a national emergency, thereby levying broad tariffs, including a baseline 10% duty on most imports.

A ruling against President Trump could compel the government to refund more than $100 billion in previously collected tariffs, potentially undermining critical funding assumptions for defense and budget plans. Conversely, if the Supreme Court upholds Trump’s authority, existing tariffs would remain in effect, and future measures, such as the recently announced duties on European goods tied to the Greenland issue, could proceed. Importers are already anticipating both potential outcomes, with many opting to keep shipments “unliquidated” to preserve their eligibility for potential refund claims.

As of the latest data, the bitcoin price has stabilized near $92,600, though it remains down approximately 2.5% over the past 24 hours. The asset is trading within a tight range, roughly 3% below its seven-day high of $95,468 and above its seven-day low of $92,284. Bitcoin currently has a circulating supply of 19.98 million BTC, out of a maximum capped supply of 21 million. The global Bitcoin market capitalization stands at approximately $1.85 trillion, reflecting a decrease of about 2% on the day, with a 24-hour trading volume reaching $32 billion.