Bitcoin prices fell 2.00% – 2.6% in the past 24 hours, completely erasing the gains made since mid-January, as global market sentiment weakened due to rising geopolitical tensions.
The fall came amid widespread pressure in the crypto market, with most major alternative crypto assets trading in the red. Ethereum, XRP and Solana each recorded significant declines, while investor sentiment returned to “Fear” levels, reflecting caution towards riskier assets.
The main source of uncertainty was US President Donald Trump’s continued rhetoric on the Greenland issue, including threats to annex the territory and impose tariffs on European countries. The move raised concerns about the implications for global trade relations and security.
Bitcoin, often seen as a risk asset in times of geopolitical tension, also suffered as investors turned to safe haven assets such as gold, which surged to new highs above US$4,700 an ounce.
Analysts said market pressure is likely to continue in the short term as long as geopolitical uncertainty persists, although some expect Trump's tariff threat to be more of a negotiating strategy than a definitive action.
