Precious metals Gold and silver are hitting new record highs almost every day. Gold jumped to $4,683, while silver touched $94 after 10% tariff threats from Donald Trump toward eight European countries starting on February 1.
While money flowed into safe-haven assets like gold and silver, another widely known safe-haven, Bitcoin, fell nearly 5%at the same time.
So, what caused Bitcoin to drop?
Gold and Silver Hit New ATH
Spot gold price climbed to a fresh all-time high of $4,683 per ounce before cooling slightly, still marking a massive 70% rise over the past year.
Silver outperformed even gold. It crossed $94 for the first time, touching $94.21 at its peak. Over the last year, silver has surged more than 190%, making it one of the strongest-performing assets in the market.
The rally followed Trump’s announcement of 10% tariffs on multiple European countries, including Germany, France, the UK, and Nordic nations. He also warned tariffs could rise to 25% by June if talks fail. This instantly brought back fears of a wider trade war.
European leaders reacted strongly, calling emergency meetings and taking steps that raised geopolitical concerns around Greenland. This combination pushed even more money into gold and silver, which many still trust during global uncertainty.
Why Bitcoin’s Price Drop?
Following Trump’s announcement, Bitcoin dropped by $6000 in a day, hitting a low of $91,893 before stabilizing around $92,572.
While Gold & Silver saw a rise amid the geopolitical tension, Bitcoin did not benefit from this safety rush. This move shows that during sudden global shocks, Bitcoin is still treated as a risk asset by many investors.
Even the institutional investors pulled back. Spot Bitcoin ETFs recorded net outflows of about $394.7 million, with only a $15 million in inflow coming from BlackRock.
As prices fell, the crypto market saw heavy liquidations. In the past 24 hours, more than 240,000 traders were liquidated, with total losses touching $864 million. Nearly 90% of these losses came from long positions, showing how bullish traders were caught off guard.
Altcoins Follow Bitcoin’s Weakness
However, the impact of the tariff war was not limited to Bitcoin. The selling pressure spread across the wider crypto market. Ethereum slipped by around 3.5%, while XRP, Solana, and Cardano fell between 5% and 8%.
Until trade tensions calm down, investors may continue to prefer gold and silver, while cryptocurrencies remain under pressure.
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