The price of Bitcoin experienced significant volatility on Saturday evening following an announcement by former U.S. President Donald Trump regarding new tariffs on European imports. Around 6 p.m. EST, the cryptocurrency market faced a substantial sell-off, attributed to heightened macroeconomic uncertainty. The value of Bitcoin fell from approximately $95,500 to an intraday low of $91,935 within around two hours, according to data from Bitcoin Magazine Pro.
The market decline resulted in the liquidation of over $500 million in leveraged long positions within a span of 60 minutes, escalating to more than $525 million in crypto long liquidations overall. Bitcoin’s price steadied near $92,600 after the downturn, reflecting a decrease of roughly 2.5% over 24 hours.
This market reaction followed Trump’s declaration to initiate a 10% tariff on goods from eight European countries, starting February 1. The affected nations include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. These tariffs are expected to increase to 25% by June 1 if further agreements are not reached. This announcement is part of Trump’s broader strategy, linked to U.S. interests in securing Greenland, and has increased tensions in transatlantic relations.
European leaders quickly voiced their opposition. A joint statement from the targeted countries warned that the tariffs could lead to a “dangerous downward spiral.” Danish Prime Minister Mette Frederiksen emphasized that Europe “will not be blackmailed,” and protests erupted in Denmark and Greenland over the weekend.
Additionally, the price of gold surged to a new all-time high of approximately $4,670 amid the geopolitical tensions, as investors sought safe-haven assets.
In parallel developments, the U.S. Supreme Court is set to deliver a decision on whether Trump had the legal authority to impose these tariffs under emergency powers. The case examines his use of the International Emergency Economic Powers Act (IEEPA) to address trade deficits as a national emergency, justifying broad tariffs. This ruling could have significant impacts on future trade policies and federal revenue. Should the court rule against Trump, the government might be compelled to refund over $100 billion in tariffs, which could disrupt defense and budget allocations. Conversely, if the court upholds his actions, the tariffs would endure, potentially leading to further measures like those linked to the European countries involved.
Businesses are preparing for the court’s outcome with various strategies, including keeping shipments “unliquidated” to potentially reclaim refunds.
As of the current market status, Bitcoin is trading roughly 3% below its seven-day high of $95,468 and remains within a narrow range above its weekly low of $92,284. The cryptocurrency’s circulating supply is approximately 19.98 million BTC, out of a maximum supply of 21 million. The global Bitcoin market capitalization is estimated at $1.85 trillion, showing a decline of about 2% for the day, with a trading volume of $32 billion within the past 24 hours.
The evolving geopolitical landscape and forthcoming legal decisions in the U.S. could continue to influence Bitcoin’s market trajectory in the near term.
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