At a Glance
- Bitcoin tumbled 2.6% to $90,600, wiping out all gains since January 14
- Global crypto market cap fell to $3.16 trillion as fear index hits 32
- Trump’s push for US control of Greenland rattles NATO and EU allies
- Gold soared to record $4,700/oz as investors flee risk assets
Why it matters: The standoff over Greenland is spooking markets and turning crypto into a barometer for geopolitical stress.
Bitcoin slid below $90,700 on Tuesday, erasing every gain made since January 14 as investors dumped risk assets amid escalating tensions over Greenland. The largest cryptocurrency now trades at levels last seen on January 12, dragged lower by Donald Trump’s renewed demand that the United States seize control of the Arctic territory.
Crypto Rout Spreads Across Majors
Bitcoin’s 2.6% drop was mild compared with losses across the broader market. Out of the top 100 tokens, only a handful escaped the sell-off.
Top-tier casualties in the past 24 hours:
- Ethereum down 3.5%
- XRP off nearly 3%
- Solana falling 3.7%
- Tron sliding 3.2%
Total crypto capitalization stands at $3.16 trillion with a $109 billion daily trading volume, a figure analysts at News Of Los Angeles note is “relatively average over the past 3 months.” The market-sentiment gauge compiled by Alternative.me has flipped back to “Fear” at 32, underscoring the skittish mood.
Why Greenland is Rocking Markets
The catalyst is geopolitical, not on-chain. On Monday the White House released a statement in which the president warned that “the World is not secure unless we have Complete and Total Control of Greenland.” The autonomous Danish territory hosts a strategic U.S. air base and is a key Arctic research hub.
Key timeline of the standoff:
| Event | Market Reaction |
|---|---|
| Trump threatens Greenland takeover | Bitcoin drops 2.6% |
| Gold hits $4,700/oz record | Crypto risk-off confirmed |
| China rebukes “selfish interests” | Investor nerves heighten |
Trump argued Denmark lacks the means to protect Greenland from Russia or China and questioned Copenhagen’s historical claim, noting “there are no written documents.” He capped the message by posting an image of himself planting a U.S. flag on Greenland soil to his TruthSocial account.
NATO, EU Allies Alarmed
Greenland is formally part of the Kingdom of Denmark, an EU and NATO member, making the U.S. president’s statement a direct challenge to two of America’s core alliances. NATO Secretary General Mark Rutte is scheduled to meet Trump on the sidelines of the World Economic Forum in Davos, while French President Emmanuel Macron has already texted Trump: “I do not understand what you are doing on Greenland…”
Analysts at The Kobeissi Letter told News Of Los Angeles they expect the president to follow a familiar playbook:
- Publicly push for a swift trade or security deal
- Impose a brief negotiation window before threatened tariffs take effect on February 1
- Declare victory if opponents concede, keeping tariffs “from ever actually going live”
The research firm notes Trump has used the same timing-pressure strategy in prior trade disputes, offering “2-3 weeks of lead time” to force a settlement.
Flight to Safety Boosts Gold
Traditional havens are benefiting. Gold futures surged to an all-time high above $4,700 an ounce, highlighting how quickly investors are shedding exposure to perceived risk, including crypto. Bitcoin’s growing correlation with tech stocks makes it particularly vulnerable when geopolitical headlines intensify.
Macro traders point to the inverse moves:
- Bitcoin down 2.6%
- Gold up ~2% to record
- Dollar index steady as yields dip
The pattern reinforces the view that, for now, crypto trades as a risk-on asset rather than digital gold.
What to Watch Next
Trade tariffs are set to take effect on February 1, giving Washington and Brussels a narrow window to defuse the clash. If talks collapse, analysts warn that tit-for-tat duties could spill into broader markets, lifting volatility gauges and pressuring both European and U.S. equities.
Until then, crypto traders will parse every presidential post and alliance response for hints of escalation or compromise. With sentiment already in “Fear” territory, another aggressive headline could easily push Bitcoin toward the $89,000 support level that capped prices earlier this month.
Key Takeaways:
- Bitcoin’s drop mirrors a broader risk-off move tied to Greenland tensions
- Altcoins are faring worse, with double-digit losses for some majors
- Gold’s record rally highlights the flight from risk assets
- Tariff deadlines and NATO meetings this week could set the next market direction
