Greenland Tensions Highlight Bitcoin’s Growing Sensitivity to Global Politics

[AIcash]

Bitcoin’s recent price swings underscore how closely the asset is now tied to global geopolitical developments, analysts say.

Earlier this month, Bitcoin fell sharply amid fears that US threats over Greenland could trigger a trade war or even conflict with Denmark, a NATO ally. Trump’s suggestion of new tariffs and confrontational rhetoric toward Europe weighed heavily on risk assets, sending Bitcoin from the mid-$90,000s to below $90,000.

Market analysts say tariffs, in particular, have been a major drag. IG’s Chris Beauchamp noted that cryptocurrencies offered little protection during the sell-off, while Swan CEO Cory Klippsten said tariff uncertainty has been Bitcoin’s biggest headwind.

Although tensions eased temporarily in Davos, analysts warn that renewed US–EU trade escalation could once again pressure Bitcoin, reflecting its deeper integration into global financial markets.

[kevin1]

bitcoin acting like a risk-on asset now is wild. used to be the “hedge” against global chaos, now it’s basically just another volatile stock.