Gold Hits Record High as Bitcoin Falls on Escalating US–EU Tariff Tensions

Source: CryptoNewsNet Original Title: Gold Hits Record High as Bitcoin Falls on Escalating US–EU Tariff Tensions Original Link: Bitcoin (BTC) and gold moved in opposite directions as tensions over tariffs escalated between US President Donald Trump and the European Union.

While the precious metal rallied to fresh record highs amid rising geopolitical uncertainty, the leading digital cryptocurrency slipped. This contrasting move mirrors past patterns observed in October and has reignited debate over what could come next for both assets.

US-EU Trade Tensions Rise After Trump’s Latest Tariff Move

On January 17, 2026, President Trump announced a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective February 1. The tariffs will rise to 25% on June 1 and stay in effect until the United States secures an agreement to purchase Greenland.

Meanwhile, representatives from the eight countries affected by the new US tariffs met for emergency talks on Sunday. In a joint statement, President Costa and President von der Leyen said the EU “stands in full solidarity” with Denmark and the people of Greenland, signaling a unified political response to Washington’s latest move.

Furthermore, reports indicated that the European Union is weighing a broader countermeasure package that could include tariffs worth up to €93 billion ($107.71 billion) or restrict US companies from the bloc’s market.

Tariff Shock Drives Investors to Gold as Stocks and Bitcoin Turn Lower

Markets reacted quickly to the tariff news, but in opposite ways. Gold prices surged to $4,690/oz in early Asian trading hours, marking a new all-time high (ATH).

Silver prices also rose to a record price of over $94/oz. In contrast, stocks opened lower.

Market Reaction Snapshot:

• S&P 500: -0.7%
• Nasdaq 100: -1%
• Dow Jones: -0.5%
• Gold: +1%
• Silver: +3%

Bitcoin also moved south alongside broader risk assets. BTC dipped below the $95,000 level. At the time of writing, the asset was trading at $92,574, down 2.67% over the past 24 hours. The total cryptocurrency market capitalization fell by nearly $98 billion during the same period.

The price drop triggered a wave of liquidations across the crypto market. Over the past 24 hours, total liquidations reached $864.35 million, with long positions accounting for more than $780 million of that figure.

Analysts noted that Bitcoin fell nearly $4,000 as $500 million worth of leveraged longs were liquidated in 60 minutes.

The contrast between gold and Bitcoin amid this tariff-driven turmoil exposes key differences in how markets view these assets. Gold’s long-standing role as a store of value during periods of economic and geopolitical stress remains largely undisputed.

Bitcoin, often described as “digital gold,” continues to trade like a risk asset in moments of heightened uncertainty, with price action closely tied to broader market sentiment rather than immediate safe-haven demand.

What’s Next for Bitcoin in January?

Analyst Timothy Peterson offered insights on Bitcoin’s lagged response to Trump’s announcement. He noted that despite 24/7 trading, Bitcoin’s price did not react for about 36 hours, only dropping once institutional trading began in Asia. This illustrates how most intraday ‘news’ about price movements is usually an irrelevant storyline told after the fact, with retail traders often leveraged up despite clear warning signals from previous tariff announcements.

Crypto analysts warned that this week “could shake the entire market,” citing a convergence of major policy developments that may trigger volatility across stocks and cryptocurrencies. EU tariffs threaten trade flows worth nearly $1.5 trillion, and if the EU starts building trade deals with countries that the US is also sanctioning, the US risks being pushed out of key trade routes. This scenario would be bearish for global risk sentiment, US stocks, and the dollar.

Experts remain divided on how Bitcoin could perform. Senior commodity strategists suggested that the Bitcoin-to-gold ratio is more likely to continue declining toward 10x, signaling sustained outperformance by gold, rather than rebound toward 30x in Bitcoin’s favor.

Economist Peter Schiff noted that everyone expects Bitcoin to follow gold’s lead and rally to new highs, but the market has given speculators too much time to buy. What’s more likely is that Bitcoin’s failure to match gold’s gains undermines its narrative as digital gold, potentially resulting in a significant correction.

Veteran trader Peter Brandt noted that US dollar-denominated assets could underperform physical commodities and expressed uncertainty over Bitcoin’s role in this shift, predicting that altcoins would lose significant value. Gold will likely return to the world’s most dependable store of wealth, with USD-denominated assets losing value to physical commodities.

Despite this bearish sentiment, optimism remains in some corners. Some analysts still expect Bitcoin to catch up to gold, noting that gold added roughly $10 trillion in market cap last year, and profit rotation into Bitcoin could drive further appreciation.

Historically, Bitcoin catches up late in market cycles rather than early, and with global M2 expansion already being priced in by gold and silver, Bitcoin may follow suit as the cycle matures.

With trade tensions escalating and risk appetite deteriorating, the market will soon reveal whether Bitcoin can catch up or if gold remains the undisputed safe-haven standard.