Trump tariff threats and policy gridlock weigh on Bitcoin

Bitcoin slipped about 2.5% against the dollar early in the week as markets turned defensive amid renewed tariff threats from US President Donald Trump.

The sell-off followed Trump’s comments targeting several European countries as he revived proposals linked to trade and Greenland.

“We have subsidised Denmark, and all of the Countries of the European Union, and others, for many years by not charging them tariffs,”

Donald Trump said.

Investors shifted towards traditional safe havens, lifting gold and silver prices while pressuring risk assets.

European leaders are expected to discuss the situation at an emergency summit in Brussels, according to Reuters.

“The U.S. is also more than the U.S. president,”

Lars Lokke Rasmussen said, adding that checks and balances remain in place.

Bitcoin’s decline was also linked to stalled progress on the Digital Asset Market Clarity Act in the United States.

“The CLARITY Act, which is intended to create a clear regulatory framework for digital assets in the US, has seen key players withdraw support,”

Simon Peters said.

Peters said disagreements over allowing yield on stablecoins have contributed to uncertainty across the crypto market.

Bitcoin traded near $95,000 on Sunday before falling below $92,000 later in the session.

Options data showed a slight bias towards call contracts, suggesting longer-term optimism despite near-term caution.

At the time of reporting, Bitcoin price was $92,678.32.