Bitcoin worth tumbles as Trump tariff threats push buyers to protected havens

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Your help makes all of the distinction. Learn extra The greenback weakened on Monday, as buyers flocked to protected havens just like the Swiss franc, after Donald Trump's newest tariff threats towards Europe over Greenland sparked a broad risk-averse transfer throughout markets.

Mr Trump introduced over the weekend he would impose an extra 10 per cent import tariff from 1 February on items from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, till the US is allowed to purchase Greenland.

European leaders had been scrambling to avert a commerce struggle and on Sunday agreed to accentuate their efforts to dissuade Mr Trump from imposing tariffs, whereas additionally getting ready retaliatory measures ought to the duties go forward.

After dropping briefly in in a single day buying and selling, European currencies together with the euro, pound and Scandinavian crowns rose. The Swiss franc, a traditional safe-haven, headed for its largest each day rise towards the greenback in a month.

Euro advantages from greenback aversion

The euro was up 0.3% at $1.163 round noon in Europe, whereas the pound was up 0.27% to $1.3415.

"Sometimes you'd suppose tariffs being threatened would result in a weaker euro," stated Khoon Goh, head of Asia analysis at ANZ. "

However, as we have seen final 12 months as nicely, when the 'Liberation Day' tariffs had been getting put in place, the affect in FX markets truly has been extra in the direction of greenback weak spot each time there's heightened coverage uncertainty emanating from the US."

<img src="https://static.independent.co.uk/2026/01/19/12/19121317-285e5258-8c47-4162-8372-6e835ba11cd3.jpg" srcset="https://static.independent.co.uk/2026/01/19/12/19121317-285e5258-8c47-4162-8372-6e835ba11cd3.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/01/19/12/19121317-285e5258-8c47-4162-8372-6e835ba11cd3.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="US President Donald Trump is threatening tariffs on the UK and other Nato countries as part of his efforts to seize control of Greenland. (Leon Neal/PA)" class="sc-1mc30lb-0 ggpMaE"/> US President Donald Trump is threatening tariffs on the UK and different Nato international locations as a part of his efforts to grab management of Greenland. (Leon Neal/PA) Traders dumped the greenback after Trump unveiled sweeping tariffs on the world final April, triggering a disaster of confidence in U.S. belongings.

Whereas some motion of capital out of the greenback was evident on Monday, most notably with the Swiss franc's features, analysts stated an additional escalation in tensions may see buyers flock again to the U.S. foreign money.

"The market has been understandably anxious concerning the greenback's decline in worth since final April. However I might actually warning towards assuming that the greenback's safe-haven standing is gone," Rabobank chief foreign money strategist Jane Foley stated."

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Even when non-U.S. buyers determined to take their cash out, the place would they go? Different markets aren't sufficiently big to keep up that. The sheer dimension of the (U.S.) market means that there's all the time going to be some safe-haven worth related to U.S. belongings," she stated.

Yen nonetheless in intervention zone

The greenback was down 0.5% on the day at 0.7984 Swiss francs, and a fraction decrease towards the Japanese yen, one other non-U.S. safe-haven, at 158 yen.

Home Japanese politics have hampered the yen in current weeks, with a looming snap election elevating expectations of larger fiscal stimulus. With the yen buying and selling round its weakest since mid-2024, the danger of official intervention is excessive, not least due to the verbal warnings from Tokyo within the final couple of weeks.

"We nonetheless stay sceptical of intervention being profitable on a sustained foundation and would wish elementary supportive yen components to play out as nicely. Strikes in yen in the present day are definitely extra contained," Derek Halpenny, MUFG's head of analysis for international markets EMEA, stated in a observe.

Cryptocurrencies, typically a barometer of investor danger sentiment, tumbled. Bitcoin was down 2.5% at $93,011, whereas ether fell 3.5% to $3,223.

Information on Monday confirmed China's economic system grew 5.0% final 12 months, assembly the federal government's goal by seizing a file share of worldwide demand for items to offset weak home consumption.

The onshore yuan climbed to a 32-month peak of 6.9630 per greenback, shrugging off the blended information, after China's central financial institution set its strongest each day fixing in additional than two years.