Breaking down Bitcoin’s volatility after Trump’s 25% tariff announcement

On the 17th of January, Trump threatened a 25% tariff on EU countries, including Denmark, Germany, and France, unless the U.S. could purchase Greenland.

The move sparked protests and a strong EU response, yet Bitcoin remained unaffected, holding steady amid market volatility.

What’s driving Bitcoin’s stability amid these tensions?

36,800 BTC removed from exchanges

Increased ETF inflows signaled growing institutional confidence in Bitcoin. A total of 1,474 BTC were added in a single day on the 16th of January, reflecting bullish sentiment.

Over the past week, $1.48 billion flowed into Bitcoin [BTC] ETFs, a signal for further potential price gains.

In addition, 36,800 BTC left exchanges since January, further reducing liquidity. This ongoing whale accumulation continued to tighten supply, preparing the ground for higher prices, despite external uncertainties.

How will the trade war impact BTC?

While the U.S.-China trade war caused a significant Bitcoin drop in October 2025, analysts warned the Greenland dispute could have an even larger impact.

Despite the uncertainty, Bitcoin remained steady, thanks to its 24/7 trading and limited supply.

Bitcoin’s resilience amid geopolitical turmoil suggests it could continue its upward momentum, even if the trade war intensifies.

Price analysis

The king coin remained steady as the news broke, trading at $95K. However, it teetered and fell soon thereafter, dropping 3% before rising 4% again, settling in to trade at $92.4K at the time of writing.

Much of this volatility was brought about by panic selling from retail traders, who rushed to sell their holdings as soon as the news broke.

According to @DefiTracer on X (formerly Twitter),

“INSIDERS SOLD 22,918 BTC, COINBASE SOLD 2,417 BTC, BYBIT SOLD 3,339 BTC, BINANCE SOLD 2,301 BTC, WINTERMUTE SOLD 4,191 BTC… THIS IS PURE COORDINATED DUMP!!”

Final Thoughts

• Bitcoin’s resilience amid geopolitical tensions highlights its growing appeal as a safe-haven asset.
• Ongoing whale accumulation and ETF inflows suggest Bitcoin’s bullish outlook despite external market challenges.