Bitcoin Holds Above $93K as Tariff Fears Trigger Crypto Volatility and Gold Rally

Bitcoin price action showed signs of stabilization during Monday’s U.S. trading session, holding above the $93,000 level after an overnight sell-off briefly pushed BTC down to around $91,800. The decline followed renewed geopolitical uncertainty after U.S. President Donald Trump threatened fresh tariffs on Denmark and other European nations amid tensions linked to Greenland. In a low-liquidity environment, with U.S. markets closed for a holiday, the crypto market remained under pressure but avoided a deeper capitulation.

Despite recovering part of its losses, Bitcoin was still down roughly 2% on the day, highlighting ongoing sensitivity to macro and political headlines. Ethereum underperformed BTC, slipping nearly 4% and hovering just above the $3,200 mark. Major altcoins faced sharper declines, with Solana, Dogecoin, Cardano, Chainlink, and Avalanche falling between 5% and 6%, while SUI plunged more than 10%, underscoring broader risk-off sentiment across digital assets.

In contrast, gold prices surged to a new all-time high near $4,700 per ounce, reinforcing its role as a traditional safe haven during periods of geopolitical stress. The precious metal has gained more than 70% over the past year, drawing attention as investors reassess risk exposure amid escalating global tensions.

According to Matt Howells-Barby, vice president at Kraken, the pullback reinforces a broader trend of asymmetric downside risk in crypto markets, where negative news tends to weigh more heavily than positive catalysts. He noted that while Bitcoin was approaching key technical levels for a potential upside breakout, geopolitical developments quickly stalled momentum. However, the relatively modest scale of the correction suggests traders may be positioning for a potential de-escalation of tariff threats, echoing the so-called “TACO” narrative that emerged during prior trade disputes.

Meanwhile, Bitfinex analysts observed that selling pressure from long-term Bitcoin holders has eased significantly, dropping to approximately 12,800 BTC per week from earlier cycle highs. Still, they cautioned that Bitcoin faces strong resistance between $93,000 and $110,000, a supply zone that has historically capped rallies. A sustained bullish trend, they said, would require a shift toward rising long-term holder supply, signaling renewed conviction and reduced sell-side pressure.