Daily Market Update: Trump Tariff Threats Trigger Worst Stock and Crypto Day in Months

TLDR

• Crypto markets dropped sharply on Tuesday with Bitcoin falling below $90,000 and Ethereum dropping 6.5% to under $3,000 as investors fled risky assets
• President Trump’s threats of tariffs on European nations over Greenland tensions triggered the selloff across global markets
• Over $1 billion in crypto positions were liquidated in 24 hours with 92% being long bets
• Stock markets posted their worst day since October with the Dow dropping over 850 points and S&P 500 and Nasdaq both falling more than 2%
• Gold surged to new all-time highs as investors moved capital into safe haven assets

Bitcoin fell below $90,000 on Tuesday as a wave of selling hit both crypto and stock markets. The drop came after President Donald Trump threatened new tariffs on European nations.

Ethereum dropped 6.5% to below $3,000 during the selloff. Solana lost more than 4% in one day and over 12% for the week.

Cardano fell around 2% in 24 hours and about 15% over seven days. The losses showed how quickly traders cut their exposure to higher-risk tokens.

Stock markets also took heavy losses during Tuesday’s session. The Dow Jones dropped more than 850 points while both the S&P 500 and Nasdaq fell over 2%.

All three major stock indexes recorded their worst daily losses since October 10. The S&P 500 and Nasdaq both moved into negative territory for 2026.

Trump’s Greenland Push Sparks Global Market Stress

The market turmoil started after Trump pushed for U.S. control of Greenland. He warned European nations opposing the idea could face trade tariffs or economic punishment.

Trump argued Greenland should fall under U.S. control to counter Russia and China’s influence in the Arctic. He also cited access to strategic shipping routes and minerals as reasons for the move.

French President Emmanuel Macron reportedly declined a role on Trump’s proposed “Board of Peace” for Gaza. Trump responded by threatening 200% tariffs on French wine and champagne.

The tariff threats raised fears of trade conflict and policy instability. Bond markets reacted sharply to the news with U.S. Treasury yields jumping higher.

The 10-year Treasury yield briefly topped 4.3% during the selloff. Higher yields make borrowing more expensive and reduce the appeal of risky investments.

Japanese government bonds also sold off sharply on Tuesday. Yields on long-dated Japanese debt surged to record levels on concerns about fiscal sustainability.

Crypto Liquidations Hit $1 Billion

The global selloff forced traders to close out their positions quickly. More than $1.09 billion in crypto positions were liquidated over 24 hours according to CoinGlass data.

Nearly 92% of the liquidations were tied to long bets. The scale showed how many traders had built up bullish positions before the drop.

Altcoins led the decline as risk appetite faded across markets. These tokens tend to react more sharply when investors pull back from risky trades.

Bitcoin followed lower as leveraged positions were forced to close. The cryptocurrency still trades like a high-risk asset during periods of market stress.

Gold prices surged to fresh all-time highs as investors moved money into safe havens. The move showed capital rotating away from risky assets rather than being reallocated within them.

Stock futures climbed on Wednesday morning setting up for a modest rebound. Dow Jones futures edged up 0.2% while S&P 500 futures rose roughly 0.4%.

Trump is scheduled to attend the World Economic Forum in Davos on Wednesday. Investors will watch for signs of further fallout in rates and currencies from his meetings.

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