A sudden surge in geopolitical tension over the weekend triggered the first major crypto downturn of the year.
Bitcoin briefly fell below $93,000 Monday, as the threat of U.S.-EU tariffs over Greenland sparked a risk-off move in digital assets.
On Jan. 17, President Trump announced plans to impose new tariffs on imports from eight European countries -- Norway, Denmark, Sweden, Finland, France, Germany, the United Kingdom, and the Netherlands.
The proposed tariffs would start at 10% and kick-in on Feb. 1. They would then rise to 25% on June 1, unless Denmark agrees to negotiate the potential U.S. purchase of Greenland.
The broader crypto market trended down as geopolitical risk sentiment spread.
Ethereum, the second largest crypto, was down 4% to $3,207.9, while popular altcoin XRP also dropped 4% to $1.97.
In all, roughly $600 million in long crypto positions were liquidated as traders cut leverage and reassessed their exposure, according to CoinDesk.
Crypto moves can offer a guide to stock market action. Looking ahead, Bitcoin's mood music may be heard in equity markets tomorrow, when markets open.
For Nic Puckrin, analyst and Coin Bureau co-founder: "Whether we see a deeper selloff will depend on whether Bitcoin closes the day below $90,000, which could see ETF holders exiting positions when the U.S. market opens tomorrow."
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