Just as global markets were beginning to price in the stability of the New Year optimism, the Trump administration has introduced new volatility.
Over the weekend, President Donald Trump made a major shift in U.S.–Europe trade policy by announcing a blanket 10% tariff.
As per the update, the tariffs will apply to eight European allies, including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, starting on the 1st of February.
In his Truth Social platform, Trump said,
“We have subsidized Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration.”
He added,
“Now, after Centuries, it is time for Denmark to give back – World Peace is at stake!”
Additionally, Trump also added a clear warning that if the U.S. does not reach a deal to buy Greenland by 1st June, those tariffs will rise sharply to 25%.
The crypto market faces Trump’s tariff jolt
Needless to say, markets reacted immediately by pulling back from risk.
Investors rushed into safe assets like gold and silver, sending gold prices to record highs near $4,667 per ounce. Crypto markets, however, struggled.
According to real-time order flow, over $4 billion in BTC was offloaded in a single hour of trading, suggesting a “coordinated dump” rather than a spontaneous retail panic.
The selling pressure was heavily concentrated among market makers and major exchanges.
Insiders led the activity, selling a total of 22,918 BTC, followed by market maker Wintermute with 4,191 BTC.
Large exchanges also contributed significantly, with Bybit selling 3,339 BTC, Coinbase offloading 2,417 BTC, and Binance selling 2,301 BTC.
Token’s price action
On the price front, Bitcoin [BTC] struggled to hold the $93,000 support level, dropping 2.26% after failing to reclaim the $95,000 psychological barrier.
Whereas, altcoins faced a steeper decline:
Ethereum [ETH] slipped to $3,209.81 after a drop of 3.23%, and Ripple [XRP] fell to $1.97 after a drop of 3.95% in the past 24 hours.
Additionally, Solana [SOL] led the losers among majors, plummeting 6.08% to $133.78 in the same period.
This broad sell-off wiped 2.51% off the global crypto market cap, bringing it down to $3.14 trillion as per CoinMarketCap.
The technical dichotomy
Interestingly, despite the localized panic, the underlying technical structure for Bitcoin remained surprisingly resilient. On the daily timeframe, both the MACD and RSI are currently holding above their respective neutral lines.
Source: Trading View
The current drop is a correction within a bull market rather than a total trend reversal. That said, the average RSI across the broader market has hit 38.04, signaling that the market is technically oversold.
Historically, these levels often precede a relief rally once the initial news shock is absorbed.
Bitcoin dominance remained a healthy 59.74%, indicating that capital is retreating to BTC rather than exiting the ecosystem entirely.
Sentiment check
In conclusion, despite the $4 billion dump, the Fear and Greed Index sat at 45 at press time, in neutral territory.
Looking back, a similar pattern happened back in October 2025, which wiped $700 million off the crypto market cap in under 24 hours. Thus, for now, the $93,000 support level is the line in the sand.
A break below this, fueled by further Greenland rhetoric, could see a retest of the $87,000 liquidity zone.
Final Thoughts
- The market is correcting, not collapsing, but narrative volatility remains the dominant force.
- Neutral sentiment signals disbelief rather than panic, implying that institutions are waiting for clarity, not abandoning crypto.