Bitcoin Slips as Gold Hits New Records After Trump’s January 2026 Tariff Shock
Bitcoin and gold moved in sharply different directions as fresh trade tensions erupted between the United States and the European Union, underscoring how markets continue to treat the two assets very differently during periods of geopolitical stress.
On January 17, 2026, U.S. President Donald Trump announced a new round of tariffs targeting Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The measures impose a 10% tariff starting February 1, rising to 25% on June 1, and will remain in place until the U.S. secures an agreement related to Greenland.
The response from Europe was swift. Representatives from the eight affected countries held emergency talks over the weekend, while EU leaders issued a joint statement expressing full solidarity with Denmark and Greenland. At the same time, reports indicated that the European Union is considering a broad retaliation package that could involve tariffs worth up to €93 billion ($107.7 billion) or restrictions on U.S. companies operating within the bloc.
Markets reacted quickly—but not uniformly. Gold surged to a new all-time high of $4,690 per ounce during early Asian trading, while silver also hit a record above $94 per ounce. Equities opened lower, reflecting deteriorating risk sentiment.
Bitcoin moved in the opposite direction of precious metals. The largest cryptocurrency fell to around $92,574, down 2.67% over the past 24 hours at the time of writing. The broader crypto market shed nearly $98 billion in total capitalization over the same period.
The sell-off triggered heavy liquidations across derivatives markets. In the past 24 hours alone, total crypto liquidations reached approximately $864 million, with long positions accounting for more than $780 million, highlighting how leveraged traders were caught off guard by the sudden shift in macro conditions.
The divergence between gold and Bitcoin has reignited debate over Bitcoin’s role as a safe-haven asset. While gold once again benefited from its long-established reputation as a store of value during geopolitical and economic uncertainty, Bitcoin continued to behave more like a risk asset, closely tracking broader market sentiment rather than attracting immediate defensive flows.
Despite Bitcoin’s round-the-clock trading, its decline appeared delayed, only accelerating once institutional activity picked up in Asian markets. This lag reinforced the idea that macro-driven moves in crypto are still heavily influenced by traditional market participation rather than purely retail flows.
With trade tensions escalating and the threat of further policy shocks looming, investors remain divided. Some expect Bitcoin to eventually follow gold higher, while others see the widening performance gap as a challenge to the “digital gold” narrative.
As tariffs move closer to implementation dates and global risk appetite weakens, markets are approaching a decisive moment—one that may determine whether Bitcoin can reclaim its hedge narrative or if gold remains the undisputed refuge in times of turmoil.