Bitcoin and gold moved sharply in opposite directions after US President Donald Trump announced new tariffs targeting several European nations.
The announcement triggered a flight to traditional safe havens. Gold demand surged, pushing prices to fresh record highs. Meanwhile, Bitcoin declined as traders reduced exposure to leveraged and speculative positions.
Key Points
- President Trump announced tariffs on eight European countries over the weekend.
- A 10% tariff would take effect on February 1, 2026, rising to 25% on June 1.
- Gold reached $4,690 per ounce during early Asian trading, marking a new all-time high.
- Bitcoin fell below $93,000 to $92,539, representing a 2.7% decrease over the last 24 hours.
- Crypto liquidations totaled $864.35 million over 24 hours.
Tariff Decision Triggers Diplomatic Response
The new 10% tariff measures apply to the United Kingdom, Denmark, Sweden, Norway, Germany, France, Finland, and the Netherlands. According to the White House, the levies will remain in place until the United States secures an agreement to purchase Greenland.
The announcement prompted a diplomatic response. Officials from the affected countries held emergency discussions to coordinate their next steps.
Subsequently, European Commission President Ursula von der Leyen and European Council President António Costa issued a joint statement affirming the European Union’s full support for Denmark and the people of Greenland.
Meanwhile, as talks continued, attention shifted to the risk of retaliation. The Financial Times reported that the EU is weighing countermeasures. These could include tariffs valued at up to €93 billion ($107.71 billion), as well as potential limits on US companies operating in the bloc.
Investors Rotate Into Precious Metals
Against this political backdrop, financial markets reacted quickly. Investors moved capital toward assets traditionally associated with stability during periods of heightened risk. Gold climbed to $4,690 per ounce today, setting a new all-time high. Silver followed suit, rising above $94 per ounce for the first time.
The rally in precious metals reflected a broader shift in market positioning. As trade tensions escalated, investors pared back exposure to growth-oriented and speculative assets, thereby setting the stage for weakness across equities and digital assets.
Bitcoin and Crypto Market Face Selling Pressure
While metals advanced, Bitcoin came under pressure. Data from CoinGecko showed the world’s largest cryptocurrency slipping below $93,000. At the time of reporting, Bitcoin was trading at $92,539, down 2.7% over the past 24 hours.
The weakness extended beyond Bitcoin. The total cryptocurrency market capitalization fell by nearly $98 billion during the same period. As prices dropped, leveraged positions were forced to unwind.
As reported earlier by The Crypto Basic, liquidations totaled $867 million over the last 24 hours, with long positions accounting for more than $785 million.
According to The Kobeissi Letter, Bitcoin dropped nearly $4,000 within a single hour as $500 million in leveraged long positions were wiped out.
Analysts Examine Bitcoin’s Lagged Reaction
Despite the sharp sell-off, some analysts focused on the timing of Bitcoin’s response. Analyst Timothy Peterson noted that prices remained stable for nearly 36 hours following the tariff announcement, with selling pressure emerging only after institutional trading activity picked up in Asia.
Moreover, Peterson highlighted a recurring pattern. He said this marked the third tariff announcement by President Trump, with Bitcoin falling each time. He added that high leverage persisted despite warning signals from previous events.
Broader Risks Weigh on Market Outlook
Analysts cautioned that volatility may not remain confined to digital assets. In a post on X, Crypto Rover highlighted several policy risks that could converge in the coming days, including EU tariffs that could affect trade flows worth nearly $1.5 trillion.
He also warned that new EU trade agreements with US-sanctioned countries could weaken American trade influence. According to Rover, such developments would be negative for global risk sentiment, US equities, and the dollar.
He further noted uncertainty surrounding an upcoming US Supreme Court decision related to the tariffs, suggesting that either outcome could pressure stocks and cryptocurrencies, including Bitcoin.
Gold Continues to Outperform Bitcoin
As uncertainty builds, analysts continue to compare gold and the relative performance of Bitcoin. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said the Bitcoin-to-gold ratio is more likely to fall toward 10x, arguing that a rebound toward 30x in Bitcoin’s favor appears less likely.
Bitcoin/Gold Five-Year Curse?
At 20x, Bitcoin/gold is unchanged from five years ago. What’s next for the ounces of the ancient store of value with three precious metals’ companions vs. the crypto with millions?
My bias is continuing reversion toward 10x vs. back to 30x.
On… pic.twitter.com/jY3yQD3FVv— Mike McGlone (@mikemcglone11) January 19, 2026
Economist Peter Schiff echoed this assessment, contending that Bitcoin’s inability to keep pace with gold undermines its “digital gold” narrative.
Veteran trader Peter Brandt added that physical commodities may outperform dollar-denominated assets, noting that Bitcoin’s role remains unclear and warning of further downside for altcoins.
Yes, Kevin, the destruction of fiat has begun. Gold will return to the world's most dependable store of wealth. USD denominated assets will lose value to physical commodities — which, BTW, may or may not include Bitcoin. Altcoins will become more worthless than USDs https://t.co/YXjKcYwm3J
— Peter Brandt (@PeterLBrandt) January 18, 2026
With trade tensions unresolved and policy risks mounting, markets remain highly sensitive to geopolitical developments. For now, gold’s continued ascent and Bitcoin’s retreat underscore how differently investors are positioning in response to global uncertainty.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
