Gold Hits ATH on Greenland Tensions, But Bitcoin Slides to $90k

Market Reaction to Tariff Dispute - Bitcoin experienced a decline, slipping toward $92,000, with a drop of approximately -2.8% on January 20, trading near $92,759 after hitting an intraday low of $92,245 [1][2] - The decline in Bitcoin's value was attributed to a risk-off sentiment in the market, influenced by a potential US-Europe trade conflict related to Greenland [1][2] Tariff Threat Details - US President Donald Trump threatened to impose new tariffs on several European countries unless the US is allowed to purchase Greenland, which unsettled investors [2][3] - A 10% tariff is set to begin on February 1, with the rate increasing to 25% by June 1 if no agreement is reached regarding Greenland [3] Broader Market Impact - The tariff threat led to a sell-off in European markets, while gold and silver prices increased as traders prepared for possible retaliation from Europe [3] - The International Monetary Fund (IMF) warned that the tariff move could trigger a "spiral of escalation," potentially leading to broader financial market stress [4] Bitcoin Trading Volume and Liquidations - Bitcoin's spot trading volume was approximately $6.58 billion, with futures volume around $62.4 billion, indicating significant trading activity despite the market's risk-off tone [4] - There were about $235.7 million in Bitcoin futures liquidations during the same period, with open interest at approximately $61.28 billion [4] Price Trends and Predictions - Bitcoin appears to be stabilizing after a correction from its peak above $120,000 in 2025, with recent price action showing higher lows forming around the $85,000 to $88,000 range [5][6] - Resistance levels have been identified near $95,000 to $97,000, suggesting potential consolidation in the near term [6]