The world’s largest crypto added some 5% last week, but was trading at levels below last week’s highs
Bitcoin dropped in Asian trade on Monday, cutting back last week’s recovery after U.S. President Donald Trump’s tariffs on major European countries, over Greenland, rattled risk sentiment.
Broader crypto prices also declined in tandem with Bitcoin, with several coins open to profit-taking after logging some gains last week.
Bitcoin shed 2.8% to $92,519.6 by 05:56 GMT. The world’s largest crypto added some 5% last week, but was now trading at levels below last week’s highs.
A delay in a long-awaited bill aimed at establishing a U.S. regulatory framework for the crypto industry also weighed on sentiment, after lawmakers postponed discussing the bill due to objections from several industry voices, most notably Coinbase.
Trump said he will impose import tariffs of up to 25% on several major European countries, including Denmark, France, and the UK, until a deal is reached to hand over Greenland to Washington.
His demands were widely rejected by European leaders, with France seen preparing retaliatory economic measures against the US.
Trump, who has constantly demanded Greenland for national security purposes, has also raised the prospect of military action in the Danish territory. This threat was now seen carrying more weight, especially after the early-2026 U.S. incursion in Venezuela.
While trade tariffs and geopolitical tensions do not directly affect crypto, they do sap the risk appetite needed to invest in speculative assets. Trump’s tariff threats through 2025 prompted several risk-off moves in crypto.
Increased risk aversion also saw traders favour physical, safe-haven assets such as gold over crypto.
Crypto markets saw $869.5 million in positions liquidated over the past 24 hours, as Trump’s tariffs added to the risk-averse mood.
A bulk of the liquidations were in long positions, with nearly $229.5 million of Bitcoin bets being wiped out, according to data from Coinglass. Ether and Solana saw some $154.6 million and $60.5 million in positions liquidated.
The weekend losses largely wiped out a mild recovery in crypto over the past week, although sentiment towards the industry remained frail.
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