Crypto prices tumbled Monday morning as fresh tariff threats between the US and the EU rattled investors. The total market capitalization slid 2.4% to $3.2 trillion over 24 hours. President Donald Trump threatened tariffs of 10% starting Feb. 1 against EU nations including Denmark, Norway, Germany, and the UK, with a possible escalation to 25% by June if Greenland annexation talks fail. The European Commission called the move blackmail and prepared retaliatory duties on €93 billion worth of US exports.
Risk-off mode kicks in
Analysts said capital rotated from risky assets like crypto into safe havens such as gold and silver. Historical parallels are stark: the US-China tariff war that began in October 2025 sent Bitcoin down nearly 25% at one point, and the global crypto market cap shrank by about 32% to $2.96 trillion. While today's sell-off is milder, prolonged disputes could deepen the rout.
CLARITY Act delay adds pressure
The slump was compounded by regulatory uncertainty. The US Senate Banking Committee postponed its scheduled markup of the CLARITY Act last week after Coinbase CEO Brian Armstrong and other industry leaders pulled support. A new hearing date has yet to be set. Separately, the US Supreme Court is reviewing the legality of Trump's tariff policies, with a final ruling pending.
The Crypto Fear and Greed Index dropped 5 points to 44 over the past day, slipping into the 'fear' zone.
Bitcoin loses a key support
Bitcoin fell to $92,250 in Asian morning hours before steadying at $92,739. Losing the $95,000 psychological level leaves the next major trendline support near $90,334. Ethereum declined 3.1% to $3,200. Other large-caps — BNB, XRP, Solana, Dogecoin — posted losses between 3% and 8%. Top decliners Ondo, Aster, and Sui each shed about 10%.
Futures markets saw over $783 million in long positions liquidated in 24 hours, most within the first 12 hours. Meanwhile, J.P. Morgan analysts expect the Fed to hold rates steady through 2026, removing a potential tailwind for risk assets.