Trump Threatens Europe with New Tariffs! Bitcoin Flash Crashes as Gold Hits Record High

On Monday morning (Asian session), the crypto market experienced a sharp downturn. Bitcoin retreated from $95,500 to around $92,000, with other major altcoins following suit, triggering massive long liquidations within a short window.

On the macro front, Trump issued tariff threats over the Greenland issue over the weekend, proposing 10% - 25% tariffs on eight European nations opposing his plan to acquire the island. This stance has met fierce resistance from multiple EU countries, suggesting a new trade war could ignite at any moment.

Driven by escalating global tensions, capital has flooded into "safe-haven" assets. Gold gapped up today, rising 1.74% to hit a fresh all-time high of $4,690, while Silver surged to $94.

Bitcoin Trend Analysis

From a technical perspective, Bitcoin's short-term structure has notably weakened following the flash crash. The 2-hour chart shows a bearish alignment of short-term moving averages, with the RSI entering oversold territory after the rapid plunge, reflecting a concentrated release of short-term sentiment and leverage pressure.

Structurally, the $92,000 level has become a crucial short-term trend support. If price consolidates horizontally in this zone, the market will enter a "time-for-space" phase of choppy digestion. Conversely, if liquidity tightens further, a test of lower support levels cannot be ruled out.

Despite short-term technical pressure, on-chain data remains bullish for the mid-to-long term. According to CryptoQuant, Bitcoin has seen continuous net outflows from exchanges over recent months. Total exchange reserves have dropped to multi-month lows, suggesting that marginal selling pressure is diminishing.

Overall, this correction was primarily driven by risk-off sentiment following the Trump tariff news, amplified by a temporary exit of short-term capital. While volatility may persist in the near term, the holder structure remains stable, and the core logic of the mid-term uptrend remains intact.

Today’s Top Gainers & Losers

ETH: Ethereum retreated alongside risk assets, currently trading around $3,200, down approximately 3.3%. Notably, ETH has been the most traded perpetual asset by volume in the last 24 hours.

DASH: Defying the broader market correction, DASH rallied over 13% in 24 hours, with trading volume up 54% from the previous session.

XMR: After a significant pullback from $800, Monero has stabilized and rebounded, gaining 7.8% in 24 hours to trade at $630.

DUSK: DUSK skyrocketed 134% in 24 hours. News-wise, Dusk Network has partnered with the Dutch stock exchange NPEX to tokenize over €200 million in regulated securities using DUSK’s privacy-compliance technology.

(Data source: BTCC)

Key Events & Data to Watch This Week

Monday: Trump attends the World Economic Forum (WEF) in Davos; U.S. markets are closed for Martin Luther King Jr. Day.

Tuesday: U.S. Q4 GDP (Advance Estimate).

Thursday: U.S. Initial Jobless Claims (Week ending Jan 17); U.S. Core PCE Price Index (Nov).

Friday: Bank of Japan (BoJ) Interest Rate Decision.

Investors should closely monitor these windows, as they could significantly impact short-term volatility. Until macro uncertainty and policy "noise" are fully digested, the crypto market is likely to remain in a high-level consolidation phase.

Risk Warning: Some of the views in this article are drawn from public media sources and are for reference only. They do not constitute any investment advice or trading recommendation. Markets involve risks, and trading should be approached with caution. Please ensure you have appropriate risk controls in place.