The bitcoin price plunged nearly $4,000 in a sharp evening sell-off after President Donald Trump announced plans to impose sweeping new tariffs on Europe on Saturday.
Around 6 p.m. EST, massive amounts of selling hit the crypto market triggering a wave of forced liquidations across the bitcoin price and altcoins.
The world’s largest cryptocurrency fell from around $95,500 to an intraday low of $91,935 in a span of roughly two hours, according to Bitcoin Magazine Pro data.
The sudden drop wiped out more than $500 million in leveraged long positions in just 60 minutes, with total crypto long liquidations topping $525 million during the same period, according to market data.
The bitcoin price has since stabilized near $92,600, but remains down about 2.5% over the past 24 hours.
The sell-off coincided with heightened macro uncertainty after Trump said the U.S. would introduce new tariffs on European nations beginning February 1.
Under the proposal, a 10% tariff would be applied to goods from eight countries — Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland — rising to 25% by June 1 if no agreement is reached.
Trump linked the measures to U.S. efforts to secure Greenland, escalating already tense transatlantic relations.
European leaders pushed back strongly. In a joint statement, the affected countries warned that the tariff threats risk a “dangerous downward spiral,” while Danish Prime Minister Mette Frederiksen said Europe “will not be blackmailed.”
Protests were reported in Denmark and Greenland over the weekend, adding to the political fallout.
Gold prices also climbed to a new all-time high of around $4,670 at the time of writing.
Economic conditions affecting the bitcoin price
On top of this, the U.S. Supreme Court is set to rule on a closely watched case that could determine whether President Donald Trump had the authority to impose sweeping tariffs under emergency powers, a decision with major implications for trade policy and federal revenues.
At issue is Trump’s use of the International Emergency Economic Powers Act (IEEPA) to declare trade deficits a national emergency and levy broad tariffs, including a baseline 10% duty on most imports.
A ruling against Trump could force the government to refund more than $100 billion in tariffs already collected, undermining funding assumptions tied to defense and budget plans, according to reports from Reuters and the Tax Foundation.
If the court upholds Trump’s authority, existing tariffs would remain in place and future measures — such as those duties on European goods tied to Greenland — could proceed. Importers are already preparing for both outcomes, with many keeping shipments “unliquidated” to preserve potential refund claims.
The bitcoin price is down roughly 3% from its seven-day high of $95,468, and trades within a tight range above its seven-day low of $92,284. The asset has a circulating supply of 19.98 million BTC, with a maximum supply capped at 21 million.
The global Bitcoin market capitalization stands at approximately $1.85 trillion, down about 2% on the day, while 24-hour trading volume reached $32 billion.
Micah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.
