Trump's tariff hammer strikes allies, cryptocurrencies plummet, gold and silver hit new highs

Authored by: Ma Mengniu, Deep Tide TechFlow

Monday morning begins with a plunge in the cryptocurrency market.

Bitcoin drops below $93,000, with a total liquidation of $864 million in the past 24 hours — the familiar feeling persists.

Meanwhile, gold and silver are reaching new all-time highs.

The true “culprit” may still be our old friend: Trump’s obsession with Greenland and the unprecedented tariff war with European allies it has triggered.

Just yesterday, Trump threatened to impose a 10% tariff on eight European countries—Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. If an agreement to purchase Greenland is not reached, tariffs will rise to 25% in June.

We are used to Trump threatening China, Mexico, and other trading partners with tariffs. But threatening NATO allies with economic weapons? This is relatively rare in post-war international relations history. When these European countries sent troops to Greenland to participate in Denmark-led “Arctic endurance” exercises, Trump interpreted it as a provocation against the U.S. and immediately wielded the tariff stick.

Europe’s response was equally unprecedented. The eight countries quickly issued a joint statement warning that Trump’s tariff threats “undermine transatlantic relations and face a dangerous spiral downward.”

More importantly, French President Macron is pushing the EU to activate the so-called “Counter-Coercion Tool,” the most powerful trade weapon the EU has passed in 2023 but has never used. The EU is discussing retaliatory tariffs on €93 billion worth of American goods, which have been ready since last year but were paused due to a trade agreement.

The sharp decline in Bitcoin can also be understood.

After being tamed by Trump and Wall Street, Bitcoin remains essentially an “American asset,” relying on the stability of the dollar system and the liquidity of U.S. financial markets.

When the U.S. faces fundamental conflicts with its traditional allies, Bitcoin loses its appeal as a “global” and “decentralized” asset. Recall the flash crash on October 11, when Trump threatened to impose an additional 100% tariff on Chinese goods, causing Bitcoin to plummet $12,000 within minutes.

In stark contrast, gold and silver’s performance reflects bets on a “de-Americanized” world.

A key detail: last summer, the trade agreement between Europe and the U.S. raised tariffs on European products to 15%, while reducing tariffs on American industrial goods to zero — criticized as “Europe’s moment of humiliation.” Now, Trump’s renewed tariff threats prove that compromises do not lead to lasting peace but may instead encourage more extortion.

This has made global central banks and investors realize a fundamental issue: in a multipolar world full of uncertainty, only “stateless” assets like gold can provide real security.

We are witnessing a historic turning point. The “liberal international order” established after the Cold War is collapsing, replaced by a new world dominated by economic nationalism. In this new world, alliances are fragile, trade becomes a weapon, and true “safe-haven assets” are no longer those dependent on specific countries or systems, but tangible assets that can cross different political entities and currency regions — typically resources, gold, silver, copper, and aluminum.

From the perspective of Bitcoin and cryptocurrencies, perhaps an internal revolution is also needed: to break free from the gravitational pull of Trump and the dollar, and to start a wave of de-“Americanization,” making Bitcoin not just a dollar asset but a decentralized asset serving all of humanity.