The global financial situation is once again in turmoil as President Donald Trump announced new tariffs targeting eight European countries. As of January 18, 2026, the administration has vowed to impose its first policy. 10% customs duty— scheduled to rise to 25% by June—About imported products from Germany, France, the UK, etc. Primary Catalyst?A new aggressive push by the US to acquire Greenland.
While trade wars have traditionally affected stocks and commodities, the cryptocurrency news cycle is now dominated by how these geopolitical tensions spill over into digital assets.
Bitcoin vs. Digital Gold as a Risk Asset
Historically, Bitcoin has struggled immediately following trade “shocks.” In April 2025, a large-scale liquidation event occurred due to the so-called “Liberation Day” tariffs, and in October 2025, the price of BTC$ dropped significantly following 100% tariffs against China.
In the current situation in 2026, Bitcoin is trading within a narrow range of: $94,000 and $97,000. Analysts are divided on the immediate outlook.
- Bearish view: Rapid increases in tariffs often create a “risk-off” sentiment. Investors frequently flee volatile assets like $Ethereum and $Solana in favor of gold and cash.
- Bullish view: High tariffs are inherently inflationary. An increase in the price of imported goods can reduce the purchasing power of fiat currencies such as the euro or dollar. This could ultimately lead to institutional demand returning to Bitcoin as a hedge against falling land prices.
Market clearing and volatility risks
The 2025 precedent shows that trade-induced volatility can lead to massive deleveraging. According to data from ReutersPrevious tariff announcements resulted in billions of dollars in liquidations within 24 hours. For traders using high leverage on crypto exchanges, these sudden “Trump tweets” and untrue social posts represent a huge systemic risk.
If the EU launches “anti-coercive measures” in retaliation, it could prolong the period of market instability. During times like these, it is even more important to protect your assets in your hardware wallets, as exchange liquidity can become tight during extreme price movements.
Can “Crypto President” save Larry?
The irony of the current situation is that the Trump administration is ostensibly supportive of cryptocurrencies, launching its own financial products and even ETFs. However, protectionist trade policies often negate claims of being “crypto-friendly” by strengthening the US dollar index (DXY). Bitcoin and the dollar often have an inverse relationship, so if the dollar becomes “stronger” due to trade barriers, it could suppress the dollar BTC price in the short term.
According to reports bloombergthe next few weeks will be critical. If Bitcoin falls below $80,000 At support levels, we may see deeper corrections. Conversely, if it is retained, $95,000 Despite the news about EU tariffs, the theory of “digital gold” for the remainder of 2026 could be confirmed.
