Last weekend, Bitcoin took a big hit. Prices fell sharply after President Trump announced new tariffs on eight European countries. The move was framed as leverage in ongoing negotiations over Greenland, and it immediately spooked the crypto market. Traders dumped roughly $860 million in long Bitcoin positions in just 24 hours, according to Cointelegraph data.
It is interesting because Bitcoin often gets called ‘digital gold,’ but this time it acted more like a tech stock. Investors clearly saw the tariffs as a macro risk and adjusted accordingly.
Geopolitical Shocks Hit Digital Assets
The administration announced 10% tariffs on imports from Denmark, France, Germany, and the UK. Trump added that these could rise to 25% by June if a Greenland deal isn’t reached. That is aggressive. Unsurprisingly, risk-on assets got sold off. Gold and silver ticked up slightly, but Bitcoin and other crypto assets dropped.
Bitcoin fell over eight percent in just a few hours. This wasn’t just a price move. Leveraged traders got hit hard. When BTC falls fast, margin calls force them to sell, which drives prices down further. The $860 million in liquidations shows how much leverage is in the market right now.
Bitcoin Acting More Like Tech Stocks
Historically, Bitcoin was supposed to be a hedge. Safe haven. That idea is weaker now. Recent events show it moves with Nasdaq tech stocks. Data over the last year and a half shows a rising correlation. Institutional traders treat Bitcoin as a high-risk, high-growth asset.
A few reasons for this:
- Big funds hold Bitcoin alongside tech assets
- Investors often sell liquid positions first in times of stress, and BTC is liquid
- Macro events affect expected growth and adoption, similar to tech valuations
Analyst Take
Market analysts noted that Bitcoin is not acting as an uncorrelated hedge. One strategist told Cointelegraph, “Capital is fleeing from speculative assets to proven safe assets. Bitcoin behaves like risk-on money right now.” On-chain data confirms this, with many moving funds into stablecoins during the sell-off.
Greenland Tariffs and Market Complexity
Using tariffs to negotiate over Greenland adds a strange twist. The island is strategically important and has mineral resources. European exporters are nervous. For crypto, this creates volatility. The whole market cap dropped nearly $200 billion. Altcoins fell even more, showing higher beta.
Other impacts included derivatives stress, negative funding rates on futures, DeFi users withdrawing assets, and renewed regulatory scrutiny.
The speed of the sell-off highlights one thing. Crypto trades 24/7. No breaks unlike stocks.
Bottom Line
The Greenland tariffs show that Bitcoin is still very sensitive to macro and geopolitical events. Leverage magnifies the risk. Long-term, the technology and decentralization story remains, but short-term, macro shocks clearly drive prices. For investors, the lesson is simple. Manage risk, diversify, and understand what drives crypto beyond hype.
