（Singapore, 19.01.2026）Bitcoin and other cryptocurrencies fell sharply on Monday as investors across global markets shifted into defensive mode following renewed tariff threats from US President Donald Trump. The move sparked a broader selloff in so-called risk assets, while traditional safe havens such as gold and government bonds surged.
The world’s largest cryptocurrency dropped as much as 3.6% in Asian trading, slipping below the US$92,000 (S$118,271) level. Losses were even steeper across other major digital tokens. Ether, the second-largest cryptocurrency by market value, declined nearly 5%, while Solana tumbled close to 9% at one point, reflecting a sharp pullback in investor appetite for higher-risk assets.
The sudden downturn followed comments from Trump over the weekend, when he said the US would impose a 10% tariff on goods from eight European countries starting Feb. 1. The levies would rise to 25% in June unless an agreement is reached on what he described as the “complete and total purchase of Greenland.” The remarks triggered immediate concern among investors, who fear a new round of trade tensions could undermine global growth and financial stability.
As markets opened on Monday, US equity-index futures fell, with technology-heavy contracts leading the decline. European stock futures also slid, while Asian shares edged lower overall. At the same time, haven assets surged. Gold and silver prices jumped to fresh record highs, underlining the sudden shift toward capital preservation. Bond prices climbed, pushing yields lower in several major markets, while the US dollar weakened against most of its peers.
Cryptocurrencies, often viewed as high-risk and highly volatile, were among the hardest hit. Data from CoinGlass showed that roughly US$600 million (S$771 million) worth of bullish crypto positions were liquidated over the past 24 hours, highlighting the speed and scale of the market reversal.
The selloff came as a setback for digital assets, which had started the year on a stronger footing after a difficult end to 2025. Bitcoin had rallied to just under US$98,000 on Jan. 14, supported by steady inflows into US-listed exchange-traded funds linked to the token. Many investors had seen that move as a recovery from oversold conditions, following tax-loss selling and widespread capitulation toward the end of last year.
According to Bloomberg, Richard Galvin, co-founder of hedge fund DACM, said the recent rebound in cryptocurrencies was largely driven by technical factors rather than any fundamental improvement in market sentiment. He noted that renewed tariff concerns have now “pumped the brakes” on that recovery. Galvin added that gold’s surge to record highs shows investors are broadly moving into a “risk-off” stance, suggesting the selloff is not specific to cryptocurrencies but part of a wider retreat from risk assets.
Market participants are now watching key technical levels. Some traders see US$90,000 as the next major support for Bitcoin if selling pressure continues. Others argue that growing institutional demand, particularly through regulated investment products, could help limit further declines. Rachael Lucas, an analyst at BTC Markets, said that while near-term volatility remains high, long-term buyers may step in if prices fall further.
Beyond cryptocurrencies, Trump’s tariff threats weighed on sentiment across global financial markets. Equity futures in both the US and Europe moved lower, while Asian shares showed mixed performance. South Korea was one of the few bright spots, supported by ongoing investment tied to artificial intelligence. Chinese stocks fluctuated even after official data showed the country’s economy grew 5% last year, meeting the government’s target.
In Europe, the reaction to Trump’s comments was swift. Leaders across the region criticized the proposed tariffs, and officials signaled they may halt approval of a trade agreement reached with the US last year. There is also discussion within the European Union about deploying stronger countermeasures if the dispute escalates. Analysts warned that a full-blown trade war between the US and Europe would likely hurt all sides.
“The threat of tariffs against fellow NATO members adds a fresh dose of uncertainty to the international trade picture,” said Tim Waterer, chief market analyst at KCM Trade. “Traders are taking a cautious stance, at least until we see how things play out this week.”
Some strategists also cautioned that trade tensions could have longer-term implications for currency and bond markets. Europe is one of the largest holders of US financial assets, owning trillions of dollars in American bonds and equities. Any move by European governments to reduce those holdings could support the euro while adding pressure to US markets.
Still, not everyone is convinced the tariffs will ultimately be implemented. Some investors point to a familiar pattern in Trump’s negotiating style, in which aggressive threats are later softened or withdrawn. This has led to talk of a possible “TACO trade” — shorthand for “Trump Always Chickens Out” — where markets initially sell off on tariff threats before rebounding once tensions ease.
For now, markets remain cautious as geopolitical uncertainty drives investors toward traditional safe-haven assets. Cryptocurrencies have moved in tandem with other risk assets, underscoring their sensitivity to broader shifts in global sentiment. Market attention is now focused on key technical levels for Bitcoin, as well as developments in trade and geopolitical negotiations in the days ahead.
