Brace yourselves, crypto enthusiasts! The already volatile Bitcoin market is facing a new storm, as former US President Donald Trump has slapped tariffs on several European nations, all because of Greenland. This move has sent ripples of uncertainty through the financial world, and it's something every investor needs to understand.
This article, written by crypto journalist Anas Hassan (since June 2025), dives deep into the unfolding situation. On January 18, 2026, Trump announced escalating tariffs on eight European countries, starting at 10% and potentially rising to 25% by June, unless Denmark agrees to sell Greenland.
What does this mean for Bitcoin? Well, the crypto market is bracing itself for potential volatility, mirroring the tariff shock of October 2025, which led to a staggering $19 billion in liquidations.
Trump's declaration, made via Truth Social, targets Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. He stated these tariffs would be in place "until such time as a Deal is reached for the Complete and Total purchase of Greenland."
This announcement has triggered an immediate diplomatic crisis. European leaders are united in their condemnation. UK Prime Minister Keir Starmer called the tariffs "completely wrong," while France's Emmanuel Macron warned that "no intimidation nor threat will influence us." Macron emphasized France's commitment to the sovereignty and independence of nations.
But here's where it gets controversial... European Commission President Ursula von der Leyen emphasized that the tariffs would undermine transatlantic relations. Swedish Prime Minister Ulf Kristersson stated, "We will not let ourselves be blackmailed," framing the situation as an EU-wide issue requiring a collective response. Finland’s President Alexander Stubb urged that issues are best resolved through discussion, not pressure. Even Trump supporter Nigel Farage criticized the tariffs, admitting they would hurt. Spain’s Prime Minister Pedro Sanchez warned that a US invasion of Greenland "would make Putin the happiest man on earth." EU foreign policy chief Kaja Kallas echoed this sentiment, noting that China and Russia would benefit from divisions among allies.
Denmark’s Foreign Minister Lars Løkke Rasmussen expressed surprise at Trump’s announcement. German MEP Manfred Weber suggested halting the recently negotiated EU-US trade deal. Thousands of people protested across Greenland and Denmark, with banners reading "Greenland is for Greenlanders" and "Hands Off Greenland."
So, what's happening with Bitcoin right now? Bitcoin is currently trading around $95,000, after weeks of sideways movement between $94,000 and $97,000. Market participants are cautious, given the geopolitical escalation. Ki Young Ju, founder of CryptoQuant, expects Bitcoin to enter a period of "boring sideways" movement for the next few months.
Capital inflows into Bitcoin have dried up. Despite this, large holders, including US banks, continue to accumulate Bitcoin. John Glover, Chief Investment Officer at Ledn, suggests Bitcoin is in Wave IV of its bull cycle, with targets between $71,000 and $84,000.
And this is the part most people miss... Trump’s aggressive tariff strategy in October 2025 caused significant damage to the crypto market. 100% tariffs on Chinese imports triggered a massive liquidation event. Bitcoin plunged below $105,000 as $19 billion in leveraged positions unwound in just 24 hours, forcing 1.6 million traders into liquidations. The current tariff threat targets America’s closest European allies, creating unprecedented uncertainty. Markets now face potential Supreme Court rulings on the legality of tariffs, alongside escalating geopolitical tensions.
What do you think? Will these tariffs significantly impact Bitcoin's price? Do you agree with the European leaders' responses? Share your thoughts in the comments below!
