Under Donald Trump, you can’t mention the president without tariffs. Tariffs have become a defining aspect of President Trump, and the global economy often reacts with caution. Not only do asset prices fall, but risky ones are often the most affected.
In 2025, Bitcoin and some of the best cryptos to buy could have flown to record highs if not for tariffs. Multiple tariff threats to China and European countries, some allies to the US, stalled growth. And in 2026, we are back again to fund managers possibly “managing risks” attached to tariffs.
On January 17, Trump proposed new tariffs on eight European countries, including the UK, Germany, and Germany. As expected, risk assets, mostly the next cryptos to explode, reversed gains, sliding. Ethereum fell towards $3,200 while Bitcoin crashed below $95,000 towards $92,000. Meanwhile, Solana crypto lost $135 but is steady above $130 at press time.
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Tariff Details: Why Trump is Targeting The 8 European Countries
As mentioned earlier, the drop was expected. If anything, it fits a familiar pattern where macro shocks, not crypto news, drive sudden price drops. From a crypto fundamental perspective, this wasn’t about a hack or a Bitcoin flaw. Instead, it was about fear. When global trade tensions rise, investors often rush to safer places, leaving volatile assets like crypto exposed.
In this case, Trump is exerting pressure on Europe and threatening to cut access to capital and economic growth. The January 17 tariffs are tied to a specific geopolitical demand: the US purchase of. The president said these levies are a response to these countries opposing US control of the territory or sending military personnel there. Target countries are European powerhouses, the UK and Germany, and most Scandinavian countries that are part of the EU: Denmark, the current owner of Greenland, and Finland.
According to Trump, in less than two weeks, starting February 1, a 10% tariff on “any and all goods” from these nations will be imposed. Four months later, in June 2026, if a deal for Greenland is not reached. The US is obsessed with Greenland, saying the tariffs as necessary for national security, specifically citing the need for a “Golden Dome” missile defense system and preventing Russian or Chinese influence in the Arctic. Only this is possible if they take over Greenland.
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Will Bitcoin and Top Cryptos to Buy Reverse Losses?
Given these demands, it is clear that Bitcoin and some of the best cryptos to buy are falling, reacting to political developments. The “risk off” drop has seen the crypto market lose about $100Bn in value in a single session. That sounds scary, but in crypto terms, it’s a reaction we’ve seen before.