Selling BTCUSD on potential US tariff escalation

Bitcoin kicked off the trading day with a bearish gap, clearly reacting to the US President's renewed tariff threats. The trigger? Trump's targeting of European allies who have firmly backed Denmark's sovereignty over Greenland was the underlying cause.  

This move illustrates the token's dramatic shift. It is no longer a safe haven during times of crisis; rather, it is a high-risk satellite orbiting the gravitational pull of traditional markets. Gone are the days when the crypto reliably climbed amid global turmoil. The asset has undergone a profound transformation, morphing from a speculative investment into a mainstream institutional holding. 

Why does Bitcoin dance to the stock market's tune? Here are the answers:

ETF effect. The watershed arrival of spot BTC exchange-traded funds in 2025 irrevocably tied the token to traditional finance. As of today, major institutions and asset managers hold the crypto alongside S&P 500 stocks in their blended portfolios. When panic strikes, they engage in broad-based selling, liquidating Bitcoin positions to cover losses elsewhere—a classic "risk-off" purge.

Liquidity sensitivity. Much like high-flying tech stocks on the NASDAQ, BTC's pulse is now synced to the Federal Reserve's (Fed) rhythm. US tighter monetary policy or shrinking liquidity prompts a flight from volatility, with the crypto often leading the sell-off.

Identity crisis. Despite its "digital gold" moniker, cold hard data reveals Bitcoin's true colors. It now correlates more closely with risky assets than with traditional safe havens. The proof? During the January 2026 tariff scare, the token fell in lockstep with equities, while actual gold soared to record highs.

Speculator's plaything. True safe havens offer stability. Bitcoin, in turn, presents amplification in the short term. Its extreme volatility makes it a tool for speculation, not preservation. Investors ride it for outsized returns in bullish times, yet they are often the first to flee when sentiment sours, thus exacerbating downturns.

Given this new paradigm, escalating tensions over Greenland are likely to exert sustained pressure on Bitcoin. 

The ultimate recommendation is to sell BTCUSD at $94,900 if the crisis surrounding Greenland gets deeper. Lock in profits at $89,300. Place Stop Loss at $99,500.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.