Bitcoin dropped almost $3,500 in a few hours on Monday due to Europe considering retaliatory measures against Trump’s trade tariff threats over Greenland. Long positions worth $750 million were liquidated, totaling over $860 million in 24 hours. Gold futures hit record highs at $4,667 per ounce, with silver futures surpassing $93 per ounce.

Trump imposed 10% trade tariffs on eight European countries, including Denmark, France, and Germany, escalating to 25% by June without an agreement on Greenland. European leaders, particularly Macron, urged the EU to activate its “anti-coercion instrument” and consider imposing €93 billion in retaliatory tariffs.

The trade war fears prompted a risk-off mood in the markets, leading to Bitcoin falling below $93,000. Analysts anticipate short-term market pain due to economic uncertainty but foresee long-term growth if money weakens. Trade war threats are causing unease among traders, anticipating a potential market plunge.

Traders are preparing for worst-case scenarios, fearing market plunges to levels seen in April 2025. Institutional investors may de-risk their holdings if they perceive Trump’s threats as serious. Market unease is prevalent, particularly since the threats target America’s closest allies, sparking concerns for future market stability.

Read more at Coin Telegraph: Bitcoin Drops $3,500 As EU Threatens Trump Tariff Retaliation