Bitcoin Price Prediction Amid US-EU Tariff Tension

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Coingapestaff

Coingapestaff

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Bitcoin Price Prediction Amid US-EU Tariff Tension

Highlights

  • Trump’s tariff plan pressures crypto market and investor sentiment negatively.
  • Bitcoin ETFs inflows indicate increased investor confidence in the recovery indications.
  • Bitcoin price must hold $90K to prevent deeper bearish movement.

Bitcoin Price remained below the $95,000 mark on Monday following a broader decline in the cryptocurrency market. 

The price of Bitcoin has fallen by 2.65% over the past 24 hours, a drop linked to rising geopolitical tensions and a large-scale liquidation event

The recent news by Donald Trump of a reintroduction of tariffs on European products has also rattled investor confidence. Other crypto market coins, including Ethereum (ETH), Solana (SOL), and Ripple (XRP), also experienced small losses.

The market has already experienced 1.1% growth within this week and 9% within the month despite the current dip.

Trump to Impose Tariffs on European Countries Over Greenland Dispute

On January 17, U.S. President Donald Trump revealed plans to impose escalating tariffs on goods imported from Denmark and other European countries. The tariffs will start with a 10% rate on February 1, and they may rise to 25% by June 1, unless the two countries come to a trade agreement.

Eight of the NATO member states, such as France, Germany, and the UK, are also threatened by Trump. Unless they help in negotiating a U.S. acquisition of Greenland, he threatened a 10% tariff beginning in February and increasing to 25% by June.

This news has been received with backlash in Europe, with some of the key political forces in the European Parliament (EP) declaring that they are opposed to the trade agreement that the EU has signed with the U.S. in July last year.

The U.S. currently has a trade agreement with the EU and UK that encompasses tariffs of 15 and 10%, respectively. Whether Trump will have new tariffs in place of these current rates or overlay them is, however, uncertain.

This has created confusion in the market, and Bitcoin prices have been experiencing a fall. The question that investors are left asking is whether the cryptocurrency will overcome this blow when the situation unfolds.

Bitcoin ETFs See Highest Inflows Since October Amid 2026

The U.S. spot Bitcoin ETFs recorded $1.42 billion in inflows last week, according to data from SoSoValue. Their weekly gain is the best since October, which is an indicator of a robust recovery at the start of 2026.

Bitcoin Price Prediction Amid US-EU Tariff Tension
Source: Sosovalue data

The renewed interest of investors in the crypto market follows months of volatility that have led to the resurgence of the crypto market. The inflows show rising confidence in Bitcoin. This performance also compares sharply to the decline experienced during the October crash, and this is a good sign.

Bitcoin Price Prediction: Will BTC Hold $90k Support?

The BTC price has recently experienced a slight pullback, hovering around $93,054. The Relative Strength Index (RSI) is at 37, indicating a bearish trend.

Conversely, Moving Average Convergence Divergence (MACD) is reflecting a bearish trend with the blue line falling below the orange signal line. 

The future Bitcoin outlook remains bullish. Any breakout above $95,000 might revert the price to the $97,500-$100,000 zone, providing a possible rally. But in case the support at $90,000 breaks, Bitcoin could approach lower levels, maybe even as low as $85,000.

Bitcoin Price Prediction Amid US-EU Tariff Tension
Source: BTC/USD 4-hour chart: Tradingview

In summary, though geopolitical tensions and technical indicators suggest bearish pressure in the short term, ETF inflows are high, and long-term investor confidence can help to recover Bitcoin. The support level of $90,000 is very important to continue the bullish momentum in the short run.

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Frequently Asked Questions (FAQs)

1. Why did Bitcoin drop below $95,000 recently?

Bitcoin declined due to geopolitical tensions, liquidation events, and renewed tariff threats by the U.S.

2. What is causing market uncertainty for cryptocurrencies?

Trump’s announcement of new tariffs on European goods has shaken investor confidence.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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