Bitcoin experienced a notable decline in early Asian session trading on Monday, retreating from recent recovery highs. The digital currency slipped to approximately $92,520 by 00:56 ET (05:56 GMT), marking a 2.8% drop. This downturn came after Bitcoin had posted a 5% gain the prior week but fell short of maintaining that momentum amid intensified geopolitical tensions and cautious market sentiment.
Investor confidence in cryptocurrencies appeared dampened by U.S. President Donald Trump’s latest imposition of tariffs up to 25% on several prominent European countries including Denmark, France, and the United Kingdom. These tariffs relate to demands over Greenland and have sparked concerns of escalating international trade conflicts. The announcement elicited sharp reactions across risk-sensitive markets globally, triggered by apprehensions about the potential unraveling of NATO and the United States pursuing further assertive actions regarding Greenland.
The prospect of heightened geopolitical risk was compounded by postponements in U.S. regulatory progress. Discussions surrounding a much-anticipated bill designed to create a formal regulatory framework for the cryptocurrency sector were delayed after strong objections from industry stakeholders, most prominently Coinbase. This regulatory uncertainty added to the cautious outlook.
Though trade tariffs and geopolitical frictions do not directly affect cryptocurrencies, the resulting risk-averse environment has significantly influenced investor behavior. The tariffs threatened to extend through 2025, fueling additional withdrawals from risk-laden assets such as cryptocurrencies in favor of traditional safe havens like gold.
Market data reflected these risk-off dynamics. Over the preceding 24 hours, approximately $869.5 million in cryptocurrency positions were liquidated, with the majority representing long positions being forcefully closed. Bitcoin saw liquidations totaling around $229.5 million. Other major cryptocurrencies were also impacted, with Ethereum losing $154.6 million and Solana $60.5 million in liquidated positions, according to Coinglass statistics.
The liquidation wave largely reversed the modest recovery cryptocurrencies had achieved over the previous week, leaving the market sentiment fragile. Altcoins mirrored Bitcoin’s decline, with Ethereum dropping 3.5% to $3,199.06 and XRP falling 4.7% to below $2. Other top digital assets experienced steeper losses: Solana declined 6.6%, Cardano decreased 7.8%, and Binance Coin (BNB) retreated 2.3%. Memecoins were particularly hard hit, as Dogecoin fell 7.4% and the token $TRUMP dropped 6.4%.
The combination of geopolitical tariff threats, potential military considerations concerning Greenland, and the delayed U.S. crypto regulatory proposal has created a complex backdrop for cryptocurrency investors. While direct impacts on digital currencies may be limited, the broader hesitation in risk appetite continues to exert downward pressure on crypto valuations.