Just as global markets began to price in the stability of New Year’s optimism, the Trump administration has introduced new volatility.
Last weekend, President Donald Trump made a major change in trade policy between the US and Europe by announcing an across-the-board 10% tariff.
According to the update, the tariffs will apply to eight European allies from February 1, including Denmark, Norway, Sweden, France, Germany, Britain, the Netherlands and Finland.
In his Truth Social platform, Trump said,
“We have subsidized Denmark, and all European Union countries and other countries, for years by not charging them tariffs or any other form of reward.”
He added:
“Now, after centuries, it is time for Denmark to give back – world peace is at stake!”
Moreover, Trump also added a clear warning that if the US does not reach an agreement to purchase Greenland by June 1, these tariffs will rise sharply to 25%.
The crypto market is facing Trump’s rate shock
Needless to say, markets immediately responded by pulling back from risk.
Investors rushed to safe assets like gold and silver, sending gold prices to record highs of nearly $4,667 per ounce. However, crypto markets struggled.
According to Thanks to the real-time order flow, more than $4 billion worth of BTC was taken out of the market in a single trading hour, suggesting a “coordinated dump” rather than a spontaneous retail panic.
Selling pressure was highly 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.
Major exchanges also contributed significantly: Bybit sold 3,339 BTC, Coinbase sold 2,417 BTC, and Binance sold 2,301 BTC.
Token’s price action
In terms of price: Bitcoin [BTC] struggled to hold the $93,000 support level and fell 2.26% after failing to recapture the $95,000 psychological barrier.
While altcoins saw a steeper decline:
Ethereum [ETH] fell to $3,209.81 after falling 3.23%, and Ripple [XRP] fell to $1.97 after falling 3.95% in the past 24 hours.
Moreover, Solana [SOL] led the losers among the majors, falling 6.08% to $133.78 over the same period.
This broad sell-off has wiped out 2.51% of the global cryptocurrency market cap, dropping it to $3.14 trillion, according to the figures. CoinMarketCap.
The technical division
Interestingly, despite the localized panic, the underlying technical structure for Bitcoin remained surprisingly resilient. On the daily time frame, both the MACD and RSI are currently above their respective neutral lines.
Source: trading view
The current decline is a correction within a bull market rather than a total trend reversal. That said, the average RSI across the broader market is hit 38.04, indicating that the market is technically oversold.
Historically, these levels often precede a relief rally once the initial news shock is absorbed.
Bitcoin dominance stayed a healthy 59.74%, indicating capital is retreating into BTC rather than leaving the ecosystem completely.
Sentiment control
In conclusion, despite the $4 billion dump, the Fear and Greed Index fed up at 45 at press time, in neutral territory.
Looking back, a similar pattern occurred in October 2025, wiping $700 million from the crypto market cap in less than 24 hours. For the time being, the support level of $93,000 is the line in the sand.
A break below that, fueled by further Greenlandic rhetoric, could mean a retest of the $87,000 liquidity zone.
Final thoughts
- The market is correcting but not collapsing, but narrative volatility remains the dominant force.
- Neutral sentiment indicates disbelief rather than panic, implying that institutions are waiting for clarity and not giving up on crypto.