Author: Ma He, Foresight News
Original Title: Trump Stirs Trouble Again: An Island Causes Bitcoin to Plunge by $3,000
At around 7:00 AM on January 19, the cryptocurrency market experienced a sudden flash crash. The price of BTC plummeted sharply in a short period, dropping from $95,531 to a low of $91,910. ETH fell from $3,350 to a low of $3,177, and SOL dropped from $143 to a low of $130. Some altcoins like SUI, XPL, and ASTER saw declines of over 10% in 24-hour period.
According to Coinglass data, over the past 12 hours, $830 million was liquidated across the network, with long positions accounting for $764 million of that. In the past 24 hours, the largest single liquidation order occurred on Hyperliquid for a BTC-USDT perpetual contract worth $25.8337 million.
Meanwhile, traditional safe-haven assets like gold and silver bucked the trend and surged to record highs. Spot gold broke through the $4,690 per ounce mark,刷新历史高点, with a daily increase of over 2%. Spot silver broke through the $94 per ounce mark, hitting a record high, with a daily gain of over 4%.
U.S. stock markets are closed today. The U.S. Dollar Index fell 0.26% to 99.14. U.S. stock futures opened lower, with S&P 500 futures down 0.71% and Nasdaq futures down as much as 1.1% at one point. U.S. 10-year Treasury futures rose 5 ticks, and 30-year Treasury futures also rose 5 ticks.
The Crypto Fear & Greed Index has currently retreated to 45.
This event is not isolated but the result of intertwined macroeconomic factors and geopolitical tensions.
Trump Wields Tariff Stick Again, Imposing Tariffs on 8 European Countries Starting February 1st
Last year, the trigger for the crypto market's "1011暴跌" (October 11th crash) was Trump wielding tariff threats against China. Now, this scene is repeating itself.
On January 18, Trump posted on Truth Social, stating that due to the Greenland issue, starting February 1st of this year, all goods exported to the U.S. from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will be subject to an additional 10% tariff. By June 1st of this year, the tariff will increase to 25%. These tariffs are to be paid continuously until an agreement on the "comprehensive and thorough purchase of Greenland" is reached.
In his post, Trump stated, "These countries—Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland—have all gone to Greenland for unknown purposes. This poses a very dangerous situation for the safety, security, and survival of our planet. These countries are playing an extremely dangerous game, and the level of risk they bring is intolerable and unsustainable. Therefore, to protect global peace and security, strong measures must be taken to bring this potential dangerous situation to a swift and indisputable end."
Furthermore, according to CNBC, after Trump issued tariff threats against European allies over the "Greenland issue," several European leaders responded强硬ly, emphasizing that Greenland's sovereignty is non-negotiable and warning that this move would further撕裂 transatlantic relations.
European Commission President Ursula von der Leyen and European Council President António Costa stated that pressuring allies with tariffs would damage EU-US relations and could trigger a "dangerous vicious cycle"; EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said that tariffs would only harm shared prosperity, divert Europe's priorities on Ukraine, and allow rivals like Russia and China to "reap the benefits." Additionally, Spanish Prime Minister Pedro Sánchez warned that more激进 U.S. actions on Greenland would have a major impact on NATO. EU ambassadors from 27 countries plan to hold an emergency meeting to coordinate their response.
That day, according to Bloomberg, Senate Democrats plan to introduce legislation to阻止 Trump from imposing tariffs on European countries that oppose the U.S. annexation of Greenland. Previously, Senate Minority Leader Chuck Schumer criticized the move for harming the U.S. economy and relations with allies.
Latest data from Polymarket shows the market is betting a 20% probability that Trump will acquire Greenland by 2027.
Tariffs and geopolitical concerns have caused investors to turn to gold and silver for safety, leading to an outflow of funds from crypto.
Additionally, the probability of the Federal Reserve holding rates steady this January is extremely high. According to Polymarket data, the market's bet on no rate cut has now risen to 96%, putting pressure on risk assets.
On the evening of January 18, crypto trading indicator analysis platform CoinKarma posted, stating, "BTC rose to nearly $98,000 this week, but when it reached that price level, the market saw the most significant selling pressure in recent weeks, causing a slight pullback. However, the overall liquidity between buyers and sellers has not shown a significant imbalance and remains relatively balanced. Other key market indicators have not yet given clear signals. Based on the current situation, long position holders who entered at the relatively low points at the beginning of the year may consider taking profits, either fully or partially closing their positions, and waiting for clearer signals before re-entering the market."
Seasoned crypto investor Dan Tapiero stated: "If investing $10,000 in crypto assets in 2026, I think you can directly allocate funds to Bitcoin, Ethereum, and Solana. As for the specific allocation, it depends on your preference."
Dan Tapiero believes that the biggest opportunities in the cryptocurrency space in 2026 lie in infrastructure and the adoption of stablecoins. Tapiero stated that he expects Bitcoin to rise to $180,000 in this cycle, citing the combined effect of growing demand and a shift in global monetary policy. Falling interest rates and massive government investment in AI infrastructure will bring strong positive factors. This global push is leading to the devaluation of all fiat currencies, including the U.S. dollar. This is very favorable for Bitcoin.
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