Trump Tariffs Trigger 3% Crypto Selloff as Gold Hits Record High
Bitcoin falls below $93K while gold reaches $4,690 ATH as new European tariffs spark flight to safe havens.
Crypto markets shed nearly 3% on Monday as President Trump's new European tariff announcement sent investors fleeing to traditional safe havens.
What Happened
The cryptocurrency market capitalization dropped 3% over the past 24 hours to $3.21 trillion, with 95 of the top 100 coins posting losses. Bitcoin fell 2.7% to $92,500, breaking below key support at $94,000, while Ethereum declined 3.6% to $3,192.
The selloff follows President Trump's weekend announcement of new tariffs targeting eight European nations. A 10% tariff will take effect on February 1, 2026, escalating to 25% by June 1. The news triggered $864 million in crypto liquidations over 24 hours.
In sharp contrast, gold surged to a new all-time high of $4,690 per ounce during early Asian trading, highlighting the divergence between digital and traditional safe-haven assets.
Why It Matters
GameFi tokens bore the brunt of the selling pressure, with the sector down 8.58%. ImmutableX (IMX) fell nearly 10% while The Sandbox (SAND) dropped around 8%. Layer 1 and Layer 2 sectors also weakened sharply, falling 4.8% and 6.7% respectively.
Digital asset analyst Nic Puckrin noted that Bitcoin has broken below critical support, suggesting further downside is likely unless buyers step in around the $82,000 level. The Bull-Bear Market Cycle Indicator shows bearish conditions began in October 2025, though the market has not yet entered an extreme bear phase.
What to Watch
With U.S. markets closed today for Martin Luther King Jr. Day, trading volumes may remain thin, potentially amplifying volatility. Analysts are watching whether Bitcoin can hold above $90,000 or if selling pressure pushes prices toward the next support zone at $88,000. The tariff situation remains fluid, and any escalation or de-escalation could significantly impact risk appetite across both crypto and traditional markets.
Key Takeaways
This is a developing story. Market conditions may change rapidly as traders digest the tariff implications and U.S. markets reopen on Tuesday.
