Cryptocurrencies fell sharply during trading on Monday, as high-risk assets came under pressure, while demand for safe havens was boosted following US President Donald Trump's proposal to impose new tariffs on eight European countries.

Bitcoin fell as much as 3.6% to below $92,000 on Monday morning, while other cryptocurrencies suffered even steeper losses. Ether, the second-largest digital asset, dropped 4.9%, and Solana fell 8.6%. This heavy selling wiped out nearly $100 billion from the total value of the cryptocurrency market.

Over the weekend, Trump announced his intention to impose a 10% tariff on imports from eight European countries starting February 1st, rising to 25% in June unless an agreement is reached regarding what he termed the purchase of Greenland. This led to a decline in US stock futures at the start of trading on Monday, while gold and silver, considered safe-haven assets, surged to record highs.

Political tensions are curbing digital momentum.

The US president's remarks have drawn sharp criticism from European leaders, who are now considering suspending ratification of a trade agreement reached last year.

Digital assets began the year on positive momentum after a weak end to 2025, failing to achieve a sustained recovery following a sharp sell-off in October. Bitcoin surged to nearly $98,000 on January 14, buoyed by strong inflows into a range of US-listed exchange-traded funds (ETFs) tracking the currency.

Richard Galvin, co-founder of hedge fund DACM, described the rise as a rebound from excessive selling levels, resulting from tax-related sell-offs and a general capitulation at the end of the year.

He added that renewed concerns about tariffs halted this momentum, noting that gold's record highs confirm that the current sell-off reflects a general aversion to risk, and is not specifically related to the cryptocurrency market.

Extensive clearance sales and anticipation of support levels

CoinGlass data showed net selling of nearly $790 million in cryptocurrency positions over the past 24 hours. Traders believe that $90,000 represents the next target for Bitcoin if it breaks through current support levels.

Conversely, optimistic investors point to institutional demand as a potential support factor for prices, according to Rachel Lucas, an analyst at BTC Markets.

Bitcoin was trading at $93,142 at 12:04 PM Riyadh time.