Bitcoin and XRP are tumbling today as Trump ramps up tariff threats. What’s happening with crypto?
Greenland may be at the center of international affairs, but the crypto markets are in the red to kick off the holiday-shortened week.
Tuesday morning, Bitcoin was trading at around $91,000, which was down around 4.5% over the past five days. It had been trading around $95,000, but took a tumble late Sunday evening, suddenly falling to less than $93,000, and trended downward early Tuesday.
Ethereum, or ETH, followed a similar trajectory: ETH values are down almost 8% over the past five days, and are currently trading just north of $3,000. XRP did the same and, as of Tuesday morning, is down roughly 7%.
In all, the crypto market is down more than 3% since Monday, per the CoinDesk 20, a crypto market index.
Other markets are also seeing a slight downturn, though not as large as crypto. The S&P 500, for example, was down almost 1.5% as Tuesday’s trading commenced.
As for the catalyst? Geopolitical tensions appear to be at the center of things, with President Trump issuing threats of new tariffs on European countries over the weekend. That threat comes in response to Trump’s desire to acquire Greenland from Denmark, which Denmark, and the rest of Europe, have balked at.
Specifically, Trump threatened new 10% tariffs on Denmark, Norway, Sweden, Finland, France, Germany, the Netherlands, and the United Kingdom. Those tariffs would commence on February 1. Trump also said the tariffs would rise to 25% at the beginning of June if Denmark does not agree to negotiate some sort of transfer of Greenland to the U.S.
European Union leaders responded Tuesday morning as the back-and-forth continues. “The European Union and the United States have agreed to a trade deal last July,” European Commission President Ursula von der Leyen said at the World Economic Forum in Davos, Switzerland. “And in politics as in business, a deal is a deal. And when friends shake hands, it must mean something.”
It’s likely that as long as the testy situation continues, crypto and other markets could experience volatility.