Bitcoin<\/a> price succumbed to a violent selloff on Monday while gold and silver surged to all-time highs following President Donald Trump<\/a>\u2018s threat of sweeping new tariffs on European allies.<\/p>\n According to CryptoSlate’s<\/em> data, BTC slipped below $93,000 within minutes during early Asian trading hours, after trading comfortably in the mid-$95,000s just moments earlier.<\/p>\n This price performance delivered a real-time stress test for the \u201cdigital gold\u201d narrative. While traditional precious metals rallied to new highs<\/a> on the prospect of geopolitical instability, the largest digital asset buckled.<\/p>\n This divergence highlights Bitcoin\u2019s current role in the macro regime. In \u201crisk-off\u201d events, Bitcoin often behaves like a high-beta liquidity instrument that is sold first as portfolios de-risk, while gold rallies on the uncertainty itself.<\/p>\n Thus, the question for institutional allocators is not whether Bitcoin can be a hedge in the long run, but whether it can act like one during the first hour of a shock when liquidity is king.<\/p>\n The immediate catalyst for Bitcoin’s price volatility<\/a> was an unusually personal political ultimatum from the US President regarding Greenland.<\/p>\n Trump threatened to impose a 10% tariff on imports from eight European allies, including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, starting Feb. 1.<\/p>\n He further threatened to ratchet that rate to 25% by June 1 unless Denmark agrees to the US’s demands regarding the territory.<\/p>\n European leaders condemned the approach, and EU officials began preparing a response that goes far beyond symbolic counter-tariffs.<\/p>\n According to the Financial Times,<\/a> EU officials are considering tariffs of 93 billion euros (equivalent to $108 billion) or restricting American companies from the bloc’s market.<\/p>\n More important than the euro figure is the toolkit Europe is willing to consider. The EU\u2019s Anti-Coercion Instrument (ACI) can extend beyond goods into services, investment, and procurement.<\/p>\n This represents the kind of escalation that markets interpret as a move from a standard trade dispute toward structural fragmentation.<\/p>\n The backdrop explains why precious metals didn’t merely rise but sprinted higher. It shows they are pricing in a world where policy risk becomes permanent rather than episodic.<\/p>\n Despite the geopolitical trigger. Bitcoin\u2019s downside appeared to be driven less by a shift in its fundamentals and more by market structure.<\/p>\n Thus, the immediate casualty of the news was traders who were speculating on crypto market prices via leveraged trades.<\/a><\/p>\n Vincent Liu, CIO of Kronos Research, told CryptoSlate<\/em> that the selloff occurred as geopolitical headlines slammed into an \u201calready fragile crypto market.\u201d<\/p>\n So, as spot prices fell, hundreds of millions in liquidations cascaded through the market. This wiped out crowded long positions in a textbook example of how mechanical selling can magnify a modest headline move.<\/p>\n Indeed, CoinGlass data<\/a> supports this view, showing that roughly $525 million in long liquidations occurred over about 60 minutes. Over a 24-hour period, that figure rose to around $790 million.<\/p>\n Despite the headline shock, on-chain data suggests the Bitcoin market has not broken its broader structure.<\/p>\n In a recent report, crypto research firm Tiger Research described a BTC market that has shifted from \u201cfear\/undervaluation\u201d to a more neutral, equilibrium state.<\/p>\n The firm noted that BTC’s key metrics are currently clustering around fair value, with MVRV-Z at approximately 1.25, NUPL at 0.39, and aSOPR near 1.00.<\/p>\n This is significant because fear-driven phases can produce explosive rallies as sentiment snaps back, whereas equilibrium phases tend to be range-bound until a strong catalyst shifts the regime.<\/p>\n Meanwhile, this view of a range-bound market is supported by recent options data<\/a>.<\/p>\nBitcoins US-EU tariff war<\/h2>\n
Bitcoins Crypto market leverage flush<\/h2>\n
Bitcoins Bitcoin on-chain signals<\/h2>\n
![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/11\/bc_game168_Sposorship_1456x180.gif\" "\\"bitcoins\\"")
<\/a><\/p>\n<\/div>\n