Trump's tariff threats hit allies, cryptocurrency plunges while gold and silver reach new highs
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Trump's tariff threats hit allies, cryptocurrency plunges while gold and silver reach new highs
The "liberal international order" established after the end of the Cold War is collapsing, giving way to a new world dominated by economic nationalism.
Navigating Web3 tides with focused insightsAuthor: Ma Mengniu, TechFlow
The Monday morning began with a plunge in cryptocurrencies.
Bitcoin dropped below $93,000, with $864 million liquidated in 24 hours—a familiar taste.
Meanwhile, gold and silver are hitting record highs.
The real "culprit" might again be our old friend: Trump's obsession with Greenland, and the unprecedented tariff war it has triggered with European allies.
Just yesterday, Trump threatened to impose a 10% tariff on eight European countries—Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland—and if no deal is reached over purchasing Greenland, tariffs would rise to 25% by June.
We’ve grown accustomed to Trump using tariff threats against China, Mexico, or other trade partners. But wielding economic weapons against NATO allies? That’s relatively rare in postwar international relations history. When these European nations deployed troops to participate in Denmark-led “Arctic Endurance” exercises in Greenland, Trump interpreted this as provocation toward the U.S., immediately brandishing his tariff stick.
Europe’s response was equally unprecedented. The eight nations swiftly issued a joint statement warning that Trump’s tariff threats “undermine transatlantic ties and risk dangerous escalation.”
More importantly, French President Macron is pushing the EU to activate its so-called “anti-coercion instrument”—the bloc’s strongest trade weapon, adopted in 2023 but never before used. The EU is discussing imposing retaliatory tariffs on €93 billion worth of U.S. goods, tariffs prepared last year but paused due to an earlier trade agreement.
Bitcoin’s plunge then becomes understandable.
After being tamed by Trump and Wall Street, Bitcoin remains essentially an “American asset,” dependent on the stability of the dollar system and liquidity in U.S. financial markets.
When the U.S. enters fundamental conflict with its traditional allies, Bitcoin loses its appeal as “global” and “decentralized.” Recall the flash crash on October 11, when Trump threatened to impose an additional 100% tariff on Chinese goods, causing Bitcoin to plummet $12,000 within minutes.
In stark contrast, the performance of gold and silver reflects bets on a “de-Americanized” world.
A key detail: Last summer’s U.S.-Europe trade deal raised tariffs on European products to 15%, while cutting tariffs on American industrial goods to zero—criticized as a “moment of European humiliation.” Now, Trump’s renewed tariff threats prove that compromise brings neither lasting peace nor security, but may instead encourage further extortion.
This makes central banks and investors worldwide recognize a fundamental truth: In an uncertain multipolar world, only “stateless” assets like gold can offer genuine security.
We are witnessing a historic turning point. The “liberal international order” established after the Cold War is collapsing, replaced by a new world dominated by economic nationalism. In this new world, alliances grow fragile, trade becomes a weapon, and true “safe-haven assets” are no longer investment instruments tied to specific nations or systems, but physical assets capable of transcending different political entities and currency regions—typified by commodities such as gold, silver, copper, and aluminum.
From the perspective of Bitcoin and cryptocurrencies, perhaps an internal revolution is also needed—to break free from the gravitational pull of Trump and the dollar, and initiate a wave of de-Americanization—so that Bitcoin evolves beyond being merely a dollar-denominated asset into a truly decentralized asset serving all humanity.
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