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US President Donald Trump has declared increasing tariffs on eight European countries, effective February 1, imposing initial 10% duties that will escalate to 25% by June, contingent upon Denmark’s agreement to sell Greenland.
Bitcoin is experiencing renewed fluctuations as global political tensions echo the October 2025 tariff crisis that led to $19 billion in liquidations.
Trump announced via Truth Social that Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face immediate tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
This action prompted urgent EU meetings and a collective denunciation from European leaders, with UK Prime Minister Keir Starmer describing the tariffs on allies as “completely wrong,” while France’s Emmanuel Macron cautioned that “no intimidation nor threat will influence us.”
France is dedicated to the sovereignty and independence of nations, in Europe and beyond. This principle guides our decisions. It underpins our commitment to the United Nations and its Charter.
It is on this foundation that we support, and will continue to support Ukraine…— Emmanuel Macron (@EmmanuelMacron) January 17, 2026
European Leaders Stand Together Against Unprecedented Threat
The tariff announcement incited an extraordinary diplomatic crisis as EU ambassadors held emergency discussions on Sunday afternoon.
European Commission President Ursula von der Leyen asserted that “tariffs would undermine transatlantic relations and risk a perilous downward spiral,” while affirming complete EU solidarity with Denmark and Greenland.
Swedish Prime Minister Ulf Kristersson stated decisively, “We will not allow ourselves to be blackmailed,” framing Trump’s demands as a matter requiring a unified EU response.
Finland’s President Alexander Stubb, who was previously seen as a Trump ally due to shared golfing interests, expressed that “among allies, matters are best resolved through dialogue, not through coercion.”
Norway’s Prime Minister Jonas Gahr Støre concurred, highlighting that “threats have no place among allies.”
Even Trump supporter Nigel Farage criticized the tariffs, acknowledging that “we don’t always see eye to eye with the US government, and in this instance, we certainly do not. These tariffs will be detrimental to us.”
We don’t always align with the US government, and in this case, we certainly don’t. These tariffs will be detrimental to us.
If Greenland is susceptible to malign influences, then consider Diego Garcia. https://t.co/z0r0IUlD6I— Nigel Farage MP (@Nigel_Farage) January 17, 2026
Spain’s Prime Minister Pedro Sanchez issued perhaps the strongest rebuke, cautioning that a US invasion of Greenland “would make Putin the happiest man on earth” by legitimizing Russia’s invasion of Ukraine and heralding “the death knell for NATO.”
EU foreign policy chief Kaja Kallas also reiterated this view, observing that “China and Russia must be reveling” as they “capitalize on divisions among Allies.”
Denmark’s Foreign Minister Lars Løkke Rasmussen expressed astonishment at Trump’s announcement following what he characterized as “constructive meetings” with Vice President JD Vance and Secretary of State Marco Rubio earlier in the week.
In light of Trump’s threats regarding Greenland, German MEP Manfred Weber proposed pausing the recently negotiated EU-US trade agreement, stating, “The 0% tariffs on US products must be suspended.”
Meanwhile, thousands protested across Greenland and Denmark, holding banners that read “Greenland is for Greenlanders” and “Hands Off Greenland.”
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Tariff Uncertainty Hangs Over Bitcoin Recovery
Bitcoin is currently trading around $95,000 after weeks of fluctuating between $94,000 and $97,000.
Market participants are exercising caution following Trump’s latest geopolitical escalation, which introduces further uncertainty to an already tenuous recovery.
The cryptocurrency has managed to avoid revisiting lower support levels in 2026, although gains remain minimal amidst ongoing geopolitical risks.
CryptoQuant founder Ki Young Ju anticipates that Bitcoin will enter a phase of “just boring sideways for the next few months” rather than experiencing significant rallies or severe declines.
Capital inflows into Bitcoin have diminished.
Liquidity channels are now more varied, so timing inflows is futile. Institutions holding long-term have disrupted the previous whale-retail sell cycle. MSTR won’t offload any significant portion of their 673k BTC.
Money has simply rotated to stocks and… pic.twitter.com/Ha866TP857— Ki Young Ju (@ki_young_ju) January 8, 2026
“Capital inflows into Bitcoin have diminished. Liquidity channels are now more varied, making timing inflows futile,” he remarked, noting that funds have “rotated to stocks and precious metals.”
Despite the absence of buying pressure, large holders, including US banks, continue to accumulate Bitcoin, with no clear signs of capitulation at this time.
In a discussion with Cryptonews, John Glover, Chief Investment Officer at Ledn, posits that Bitcoin remains in Wave IV of its bull cycle, with completion targets set between $71,000 and $84,000.
“Confirmation of our trajectory will arise from either a break and close above $104,000, which would indicate we are commencing Wave V, or a break below $80,000, which would suggest a dip to the low $70s before a subsequent rise,” Glover elaborated.
Source: TradingView
October Tariff Precedent Raises Concerns
Trump’s confrontational tariff strategy previously wreaked havoc on crypto markets in October 2025 when 100% tariffs on Chinese imports instigated one of the largest single-day liquidation events in history.
Bitcoin plummeted below $105,000 as $19 billion in leveraged positions unwound within 24 hours, forcing 1.6 million traders into liquidations, with nearly 87% being long positions.
Open interest in Bitcoin futures collapsed by over 30% during that selloff before rebounding above $114,000 days later.
The current tariff threat targets America’s closest European allies instead of adversaries, generating unprecedented uncertainty regarding transatlantic relations.
Markets now face potential Supreme Court rulings on the legality of tariffs alongside escalating geopolitical tensions concerning Greenland, Venezuela, and broader global trade policy.
These combined factors pose a risk of repeating October’s volatility despite Bitcoin’s recent price stability.
The post Bitcoin Braces as Trump Slaps 25% Tariffs on Europe Over Greenland appeared first on Cryptonews.
