Crypto markets are under renewed pressure as investors digest fresh tariff threats from U.S. President Donald Trump, triggering a broader risk-off move across global financial markets and deepening the digital asset selloff.
Bitcoin and Ether Revisit Multi-Week Lows
Bitcoin and Ether both retested their lowest levels in more than two weeks, as crypto traders reacted to mounting geopolitical and macroeconomic stress. The selloff mirrors weakness in traditional markets, where equities and bonds responded sharply to escalating trade tensions between the United States and Europe.
The proposed tariffs are part of the Trump administration’s effort to pressure Denmark into reconsidering its control of Greenland. With European leaders showing little appetite for compromise, investors across asset classes have shifted toward a more defensive posture.
Risk Assets Sink, Safe Havens Surge
Traditional markets reflected the same caution. The S&P 500 fell 1.9% on Tuesday, while gold prices surged to a fresh all-time high, underscoring a clear rotation into safe-haven assets. The total cryptocurrency market capitalization dropped to $2.71 trillion, down sharply from nearly $3 trillion just a week earlier.
Bond markets also flashed warning signs. U.S. 5-year Treasury yields climbed to their highest level in nearly six months, a move often associated with recession fears or rising inflation expectations, as investors demand higher returns to hold government debt.
Dalio Warns of Financial Conflict
Billionaire hedge fund manager Ray Dalio weighed in on the turmoil, telling CNBC that the world may be entering a “new phase of global financial conflict.” Dalio warned that as foreign governments reassess exposure to U.S. assets, trade disputes could easily expand into capital flow disruptions, a pattern seen repeatedly throughout history.
Dalio has long cautioned about declining confidence in the U.S. dollar, a narrative that might normally support crypto as an alternative system. So far, however, precious metals-not digital assets-have captured that bid.
Silver Steals the Spotlight
While crypto struggles, silver has emerged as a standout performer, rising 64% since December. Its market capitalization has now reached $5.3 trillion, benefiting from both safe-haven demand and its role as a critical industrial input. For crypto investors expecting Bitcoin to act as “digital gold,” the divergence has been difficult to ignore.
European leaders have further inflamed tensions. Ursula von der Leyen, president of the European Commission, warned that any EU response to U.S. threats would be “unflinching, united, and proportional” heightening fears of spillover effects across global markets.
Corporate Giants Close the Gap
Despite the pullback, Bitcoin remains a heavyweight. With a market cap of roughly $1.8 trillion, Bitcoin ranks as the eighth-largest tradable asset globally. However, corporate titans like TSMC and Saudi Aramco are rapidly closing in.
Ether appears more vulnerable. With a market capitalization near $360 billion, it has slipped to 42nd place globally, recently overtaken by companies such as Home Depot and Netflix. Overall, the crypto market is now 32% below its all-time high reached in October 2025.
Macro Risks Take Center Stage
Investor focus has shifted decisively toward macroeconomic and sovereign debt risks. Japan, the world’s fourth-largest economy, is facing renewed scrutiny as 20-year Japanese government bond yields surged to record highs. According to a TD Securities report, the move has spilled into U.S., UK, and Canadian markets, serving as a warning to heavily indebted nations.
With geopolitical tensions rising and bond markets turning volatile, crypto remains exposed. For now, Bitcoin’s chances of reclaiming $95,000 and Ether revisiting $3,300 hinge largely on whether President Trump can de-escalate trade tensions with European leaders during talks scheduled for later this week.
