US tariff rhetoric at Davos sparks crypto sell-off

Crypto markets turned lower after US Treasury Secretary Scott Bessent reaffirmed the Trump administration’s willingness to use tariffs as a core policy tool.

Bitcoin slipped below $90,000 while Ethereum fell under $3,000 as investors shifted into risk-off positioning.

Speaking at the World Economic Forum in Davos, Bessent said tariffs remain central to US foreign policy rather than a temporary measure.

“Sit back, take a deep breath, do not retaliate. The president will be here tomorrow and he will get his message across,”

Scott Bessent said.

He warned that a 10% tariff could be imposed as early as February if Denmark and allied countries fail to cooperate over Greenland.

The comments revived concerns about trade-driven inflation and tighter liquidity conditions.

Economists have warned that tariffs function as a hidden tax on consumers, reducing discretionary spending.

Analysts said weaker liquidity and rising price pressures typically weigh on speculative assets such as cryptocurrencies.

Altcoins fell more sharply than major tokens as leverage was reduced across the market.

Traders said the reaction mirrors previous episodes where tariff escalation triggered crypto market weakness.

At the time of reporting, Bitcoin price was $88,984.04.