Bitcoin slips as gold rallies amid Europe’s ‘trade bazooka’ warning

Written by Isaac FrancisPublished jan. 19 2026Last Updated jan. 19 2026

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Bitcoin fell sharply on Monday while gold and silver futures surged after the European Union threatened retaliatory action against new US trade tariffs.

The price of Bitcoin dropped by 3.6% within hours, sliding from around $95,450 to below $92,000 during early trading.

Market data showed roughly $750 million in long positions were liquidated in four hours, pushing total daily liquidations above $860 million.

Bitcoin later stabilised slightly, trading near $92,580 after recovering from its weekly low.

Precious metals moved in the opposite direction as investors shifted into traditional safe havens.

Gold futures climbed to a record high of $4,667 per ounce as concerns over renewed trade tensions intensified.

Silver futures also jumped above $93 per ounce for the first time on record.

Over the weekend, US President Donald Trump announced plans to impose 10% tariffs on eight European countries from February 1.

The affected countries include Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the UK.

Trump warned that tariffs could rise to 25% by June if negotiations over Greenland do not progress.

European leaders responded strongly, signalling a willingness to counter US measures.

French President Emmanuel Macron urged the EU to activate its anti-coercion instrument, often described as a “trade bazooka”.

The European Union is also weighing delayed retaliatory tariffs worth up to 93 billion euros.

“At least judging from the first reactions, some European leaders are willing to play hardball,”

Carsten Brzeski said.

Crypto analysts said the escalating trade dispute has triggered a risk-off mood across global markets.

“I see Trump’s tariffs over Greenland sparking trade war fears and creating a risk-off mood in markets,”

Andri Fauzan Adziima said.

He added that Bitcoin’s drop reflected liquidations and investor fear during major macroeconomic shocks.

Jeff Mei said trade war threats are unsettling markets because they target close US allies.

He warned that traders are preparing for worst-case scenarios, with institutions potentially reducing exposure if tensions escalate.

At the time of reporting, Bitcoin price was $92,511.38.