Bitcoin Braces As Trump Slaps 25% Tariffs On Europe Over Greenland

What Happened

US President Donald Trump announced escalating tariffs on eight European nations, starting on February 1, threatening 10% levies that will rise to 25% by June, until Denmark agrees to sell Greenland.

The tariff announcement triggered an extraordinary diplomatic crisis as EU ambassadors convened emergency meetings on Sunday afternoon.

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

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

Market Context

Bitcoin faces renewed volatility as geopolitical tensions mirror the October 2025 tariff shock that triggered $19 billion in liquidations.

Market participants remain cautious following Trump’s latest geopolitical escalation, which adds fresh uncertainty to an already fragile recovery.

“Capital inflows into Bitcoin have dried up. Liquidity channels are more diverse now, so timing inflows is pointless,” he stated, noting money has “rotated to stocks and shiny rocks.“

Despite a lack of buying pressure, large holders, including US banks, continue to accumulate Bitcoin, with no clear signs of capitulation yet.

Why It Matters

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

Given Trump’s threats over Greenland, German MEP Manfred Weber suggested halting the recently negotiated EU-US trade deal, stating, “The 0% tariffs on US products must be put on hold.“

The crypto has avoided revisiting lower support levels in 2026, though gains remain thin amid persistent geopolitical risks.

CryptoQuant founder Ki Young Ju expects Bitcoin to enter “just boring sideways for the next few months” rather than experiencing sharp rallies or deep crashes.

Details

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

The move sparked emergency EU meetings and unified condemnation from European leaders, with UK Prime Minister Keir Starmer calling tariffs on allies “completely wrong” while France’s Emmanuel Macron warned “no intimidation nor threat will influence us.“

European Leaders Unite Against Unprecedented Threat

Swedish Prime Minister Ulf Kristersson stated bluntly, “We will not let ourselves be blackmailed,” characterizing Trump’s demands as an EU-wide issue requiring a collective response.

Finland’s President Alexander Stubb, previously considered a Trump ally through shared golf interests, urged that “among allies, issues are best resolved through discussion, not through pressure.“

Norway’s Prime Minister Jonas Gahr Støre agreed, stressing “threats have no place among allies.“

Even Trump supporter Nigel Farage criticized the tariffs, admitting “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 delivered perhaps the sharpest rebuke, warning that a US invasion of Greenland “would make Putin the happiest man on earth” by legitimizing Russia’s Ukraine invasion and spelling “the death knell for Nato.“

EU foreign policy chief Kaja Kallas also echoed this sentiment, noting “China and Russia must be having a field day” as they “benefit from divisions among Allies.“

Meanwhile, thousands protested across Greenland and Denmark, carrying banners reading “Greenland is for Greenlanders” and “Hands Off Greenland.“

Tariff Uncertainty Clouds Bitcoin Recovery

Bitcoin currently trades around $95,000 after weeks of range-bound movement between $94,000 and $97,000.