Trump's Tariff Surprise Causes Bitcoin's Turmoil – Will BTC's Support Hold Firm?

As global markets were starting to embrace the optimism of a new year, unexpected volatility has emerged due to recent developments in trade policy from the Trump administration.

Key Takeaways

President Trump announced a 10% tariff on eight European allies, causing market volatility.
The cryptocurrency market reacted with significant sell-offs, with over $4 billion in BTC sold within an hour.
Bitcoin struggled to hold the $93,000 support level, while altcoins experienced steeper declines.
Despite market turmoil, Bitcoin's technical indicators remain resilient and suggest potential for recovery.
Market sentiment is currently neutral, with critical support levels to monitor in light of ongoing geopolitical developments.

Trump's tariff shock sends Bitcoin reeling - Can BTC's support hold?

Over the weekend, President Donald Trump made a notable alteration in U.S.–Europe trade relations by proclaiming a blanket 10% tariff. This tariff will target eight European allies, including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, beginning on February 1.

In a post on his Truth Social platform, Trump stated, “We have subsidized Denmark and all of the countries of the European Union, and others, for many years by not charging them tariffs or any other forms of remuneration.” He further emphatically warned that if the U.S. does not secure an agreement to purchase Greenland by June 1, these tariffs could increase significantly to 25%.

Impact of Trump's Tariff on the Crypto Market

The immediate reaction from the markets was a retreat from higher-risk assets. Investors turned to safer options like gold and silver, propelling gold prices to historic levels near $4,667 per ounce. However, the cryptocurrency market faced significant challenges.

Real-time order flow revealed that over $4 billion in Bitcoin (BTC) was sold off in just one hour, indicating a “coordinated dump” rather than a sudden retail panic. The selling pressure primarily came from market makers and major exchanges. Notably, insiders sold a total of 22,918 BTC, with market maker Wintermute contributing 4,191 BTC. Major exchanges also played a role, with Bybit selling 3,339 BTC, Coinbase offloading 2,417 BTC, and Binance marking down 2,301 BTC.

Bitcoin's Price Movement

On the price front, Bitcoin struggled to maintain its $93,000 support level, experiencing a drop of 2.26% while failing to break through the psychological threshold of $95,000. Altcoins faced even larger declines, with Ethereum (ETH) falling to $3,209.81 (a decrease of 3.23%) and Ripple (XRP) dropping to $1.97 (a 3.95% decline) over the past 24 hours. Additionally, Solana (SOL) saw the largest drop among major cryptocurrencies, plummeting by 6.08% to $133.78.

This widespread sell-off resulted in a 2.51% decrease in the global cryptocurrency market cap, bringing it down to $3.14 trillion according to CoinMarketCap.

Technical Analysis

Interestingly, despite the localized panic, Bitcoin's underlying technical structure appears relatively resilient. On the daily chart, both the MACD and RSI indicators are holding above their neutral lines.

The current decline is viewed more as a correction within a bull market rather than a complete trend reversal. The average RSI across the broader market has dipped to 38.04, suggesting that the market is technically oversold. Historically, such conditions often precede a relief rally after the initial shock from the news has subsided.

Bitcoin's dominance within the market remains solid at 59.74%, indicating that while some capital has shifted away from altcoins, there is still a clear retreat towards Bitcoin rather than a total exit from the cryptocurrency ecosystem.

Market Sentiment Overview

Despite the significant $4 billion sell-off, the Fear and Greed Index stood at 45, indicating a neutral sentiment at press time. A similar pattern was witnessed in October 2025, which resulted in a $700 million decrease in market cap within 24 hours. As things stand, the $93,000 support level is crucial; a break below this level, possibly intensified by ongoing rhetoric regarding Greenland, could prompt a revisit of the $87,000 liquidity zone.

Conclusion

As traders and investors navigate the current complexities introduced by Trump's tariff decisions, it remains to be seen how the cryptocurrency market will respond in the upcoming days. The stability of Bitcoin's support at $93,000 will be a key factor to watch in this dynamic landscape.