Trump causes more trouble: An island causes Bitcoin to drop $3,000

Written by: Mahe, Foresight News

At around 7 a.m. this morning, January 19, the cryptocurrency market experienced a sudden flash crash, with BTC prices plummeting sharply in a short period, from a low of $95,531 to $91,910. ETH dropped from a low of $3,350 to $3,177, and SOL from $143 to $130. Some altcoins such as SUI, XPL, and ASTER fell over 10% in 24 hours.

According to Coinglass data, in the past 12 hours, the entire network saw $830 million in liquidations, with $764 million in long positions liquidated. Over the past 24 hours, the largest single liquidation occurred on Hyperliquid’s BTC-USDT perpetual contract, valued at $25.83 million.

Meanwhile, traditional safe-haven assets like gold and silver rose against the trend, reaching new all-time highs. Spot gold surpassed the $4,690 per ounce mark, hitting a new high and rising over 2% intraday. Spot silver surpassed $94 per ounce, setting a record high with an intraday increase of over 4%.

The US stock market is closed today, with the US dollar index down 0.26%, quoted at 99.14. US stock futures opened lower, with S&P 500 futures down 0.71% and Nasdaq futures dropping as much as 1.1%. US 10-year Treasury futures rose 5 basis points, and 30-year Treasury futures also increased by 5 basis points.

Currently, the crypto market fear and greed index has fallen back to 45.

This event is not isolated but the result of macro factors intertwined with geopolitical tensions.

Trump once again wields the tariff stick, imposing tariffs on 8 European countries starting February 1

Last year’s “1011 crash” in the crypto market was triggered by Trump’s tariff threats against China, and now this scene is replaying.

On January 18, Trump posted on Truth Social that due to the Greenland issue, starting February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face a 10% tariff on all goods exported to the US. By June 1, the tariff will increase to 25%. These tariffs must be paid continuously until an agreement is reached on “comprehensive and thorough purchase of Greenland.”

In his post, Trump stated, “Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland have all gone to Greenland for unclear purposes. This poses a very dangerous situation for our planet’s security, safety, and survival. These countries are playing an extremely dangerous game, and the risks they bring are intolerable and unsustainable. Therefore, to protect global peace and security, strong measures must be taken to quickly and unequivocally end this potential threat.”

Furthermore, according to CNBC, after Trump issued tariff threats to European allies over the “Greenland issue,” several European leaders responded strongly, emphasizing that Greenland’s sovereignty is non-negotiable and warning that this move could further fracture transatlantic relations.

European Commission President Ursula von der Leyen and European Council President António Costa said that using tariffs to pressure allies would damage US-Europe relations and could trigger a “dangerous vicious cycle.” EU High Representative for Foreign Affairs and Security Policy Kaja Kallas stated that tariffs would only harm shared prosperity, distract Europe from its priorities on Ukraine, and allow Russia and China to “sit back and reap the benefits.” Additionally, Spanish Prime Minister Pedro Sánchez warned that more aggressive US actions in Greenland could cause significant shocks to NATO. The 27 EU ambassadors plan to hold an emergency meeting to coordinate responses.

On the same day, Bloomberg reported that Democratic senators plan to introduce legislation to block Trump’s tariffs on European countries opposing the US annexation of Greenland. Previously, Senate Minority Leader Chuck Schumer criticized such measures as damaging to the US economy and alliances.

Latest Polymarket data shows a 20% market probability that Trump will acquire Greenland before 2027.

Tariffs and geopolitical concerns have driven investors toward gold and silver as safe havens, leading to capital outflows from crypto.

Additionally, in January, the Federal Reserve is highly likely to hold rates steady. According to Polymarket data, the market’s probability of no rate cut has risen to 96%, putting pressure on risk assets.

On the evening of January 18, CoinKarma, a crypto trading indicator analysis platform, posted that “BTC surged close to $98,000 on Monday, but as it approached that level, the market experienced the most significant selling pressure in recent weeks, causing a slight pullback. However, overall liquidity between buyers and sellers has not shown obvious imbalance and remains relatively balanced. Other key market indicators have not yet shown clear signals. Based on current conditions, long positions entered at the relatively low points early in the year may consider taking profits, possibly closing all or part of their positions, and re-entering after clearer signals emerge.”

Senior crypto investor Dan Tapiero said, “If I were to invest $10,000 in crypto assets in 2026, I would consider allocating funds directly to Bitcoin, Ethereum, and Solana, depending on personal preferences.”

Tapiero believes that the biggest opportunities in the crypto space in 2026 lie in infrastructure and stablecoin adoption. He predicts Bitcoin could rise to $180,000 in this cycle, driven by increasing demand and shifts in global monetary policy. Falling interest rates and large-scale government investments in AI infrastructure will provide strong tailwinds. This global push is causing all fiat currencies, including the US dollar, to depreciate, which is highly favorable for Bitcoin.