Bitcoin Prepares for Volatility as Trump Imposes 25% Tariffs on Europe Over Greenland

In a bold move, U.S. President Donald Trump has announced increased tariffs on eight European nations, set to begin on February 1. These tariffs start at 10% and will escalate to 25% by June if Denmark does not comply with Trump's demand to sell Greenland.

Key Takeaways

Trump has introduced tariffs on eight European countries, starting at 10% and increasing to 25%.
Bitcoin is likely to experience volatility akin to past tariff announcements due to rising geopolitical tensions.
European leaders have united against the tariffs, asserting the need for diplomatic resolutions.
Current market conditions create uncertainty for Bitcoin, which is trading around $95,000 after previous fluctuations.

Bitcoin Prepares for Volatility as Trump Imposes 25% Tariffs on Europe Over Greenland

As these geopolitical tensions rise, Bitcoin is anticipated to face renewed fluctuations similar to the significant price shifts experienced after the October 2025 tariff announcements, which led to $19 billion in liquidations.

Trump took to Truth Social to declare that Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will bear immediate tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”

This announcement has prompted emergency meetings among EU leaders, and they've responded with unanimous condemnation. UK Prime Minister Keir Starmer labeled the tariffs on allies as “completely wrong,” echoing sentiments from French President Emmanuel Macron who warned, “no intimidation nor threat will influence us.”

European Leaders Stand Against Unprecedented Tariffs

The announcement of tariffs incited a diplomatic crisis, leading EU ambassadors to convene emergency talks on Sunday afternoon.

European Commission President Ursula von der Leyen stated that “tariffs would undermine transatlantic relations and risk a dangerous downward spiral,” showing full EU solidarity with Denmark and Greenland.

Swedish Prime Minister Ulf Kristersson firmly stated, “We will not let ourselves be blackmailed,” insisting that Trump's demands should be treated as an EU-level concern requiring joint action.

Finland's President Alexander Stubb, who once allied with Trump over golf interests, urged that “among allies, issues are best resolved through discussion, not through pressure.”

Norway’s Prime Minister Jonas Gahr Støre reiterated that “threats have no place among allies.”

Even Trump supporter Nigel Farage expressed concern, saying, “we don’t always agree with the US government and in this case we certainly don’t. These tariffs will hurt us.”

Spain’s Prime Minister Pedro Sanchez issued a sharp comment, alleging that a U.S. invasion of Greenland “would make Putin the happiest man on earth,” compromising NATO's unity.

EU foreign policy chief Kaja Kallas emphasized that “China and Russia must be having a field day,” benefiting from the discord among Allies.

Denmark’s Foreign Minister Lars Løkke Rasmussen expressed surprise at Trump's announcement after what he described as “constructive meetings” with Vice President JD Vance and Secretary of State Marco Rubio.

In light of Trump’s threats concerning Greenland, German MEP Manfred Weber suggested suspending the recently negotiated EU-US trade deal, asserting that “The 0% tariffs on US products must be put on hold.”

Thousands protested across Greenland and Denmark, carrying signs that read “Greenland is for Greenlanders” and “Hands Off Greenland.”

Tariff Concerns Impact Bitcoin's Path

Currently trading around $95,000, Bitcoin has experienced weeks of stability between $94,000 and $97,000.

Market participants are cautious following Trump’s latest move, which injects fresh uncertainty into an already fragile recovery. Bitcoin has managed to stay above lower support levels in 2026, but gains remain limited due to ongoing geopolitical tensions.

Ki Young Ju, the founder of CryptoQuant, expects Bitcoin to remain in a “boring sideways pattern for the next few months,” instead of seeing sharp price changes up or down.

He pointed out that capital inflows into Bitcoin have decreased, with liquidity shifting toward stocks and other investments.

Despite the lack of immediate buying pressure, significant holders, including U.S. banks, continue to accumulate Bitcoin, and there are no clear signs of capitulation.

According to John Glover, Chief Investment Officer at Ledn, Bitcoin remains in Wave IV of its bull cycle, with targets for completion between $71,000 and $84,000.

“Confirmation for our future trajectory will occur if we break and close above $104,000, indicating the start of Wave V, or drop below $80,000, which would predict a swing to the low $70s before moving higher,” Glover explained.

Trump Tariffs Greenland - Bitcoin Price Chart

Historical Context and Future Implications

Trump's recent tariff strategy evokes memories of the turmoil in crypto markets following the October 2025 tariffs on Chinese goods.

Those tariffs triggered massive liquidations, with Bitcoin falling below $105,000 as $19 billion in leveraged positions were unwound in just one day, affecting 1.6 million traders.

At that time, nearly 87% of the positions liquidated were long, and Bitcoin futures open interest plummeted by over 30% before recovering above $114,000 in the following days.

The current tariff threats impact America's staunchest European allies instead of adversaries, creating unparalleled uncertainty regarding transatlantic relations.

Additionally, markets are bracing for potential Supreme Court rulings regarding the legality of tariffs amidst escalating geopolitical tensions surrounding Greenland, Venezuela, and the broader international trade landscape.

These factors threaten to resemble the volatility seen in October, even with Bitcoin's recent price steadiness.