In Brief:
- Bitcoin dips below $91,000 as renewed US tariff threats and Greenland speculation drive risk-off flows.
- Cryptocurrencies join the “Sell America” trade, with XRP and Ethereum also falling amid US-Europe tensions.
- Dollar weakness and safe-haven buying in gold highlight markets rotating away from US assets.
Bitcoin (BTC-USD) has fallen sharply this week, dropping below $91,000 on Tuesday as renewed US tariff threats and geopolitical tensions sparked risk-off sentiment across markets.
The selloff comes amid growing chatter on Wall Street of a “Sell America” trade, where investors move away from US stocks, bonds, and dollars amid uncertainty over President Donald Trump’s campaign to acquire Greenland.
While markets appear calm on the surface, rising tensions between the US and Europe, particularly around Greenland, raise the prospect of a higher-volatility environment.
Cryptocurrencies are following the risk-off trend, with XRP and Ethereum down about 2.5% and Bitcoin off 1.4% at $91,324.23 by 11:20 GMT.
The US dollar weakened alongside the crypto selloff, with the dollar index DXY down 0.5% so far on the day. Gold continues to attract safe-haven flows, hitting a new high of $4,737 per ounce.
World leaders have widely condemned Trump’s Greenland push. European Council President António Costa and European Commission President Ursula von der Leyen said tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Brussels has also threatened retaliatory measures if the US follows through.
Lingering uncertainty intensified after Trump targeted France directly, warning he could impose 200% tariffs on French wine and champagne over Paris’s refusal to join his “Board of Peace” initiative for Gaza reconstruction. Trump is expected to speak at the World Economic Forum in Davos this week, where he may meet European leaders.
Technicals are largely sidelined as traders remain in a risk-off mood, with geopolitical uncertainty dictating market moves more than conventional indicators.