Why does Bitcoin remain resilient under the shadow of the trade war despite Trump's 25% tariff hike impacting the EU?

GateNews
BTC-2,27%

January 19 News, Trump announced that if EU countries do not cooperate with the US stance on Greenland, tariffs of 25% will be imposed on several EU countries including Denmark, Germany, and France. This statement quickly triggered strong reactions from Europe, and market concerns about a new round of trade friction intensified, but Bitcoin’s performance surprisingly remained relatively stable.

Against the backdrop of escalating geopolitical tensions and fluctuations in global financial market sentiment, Bitcoin did not experience a sustained decline but instead showed certain resilience. On-chain data indicates that the key factors supporting Bitcoin prices come from synchronized actions of institutional funds and long-term holders.

Data shows that on January 16, the net inflow of Bitcoin ETFs was about 1,474 BTC, signaling continuous institutional investment. Over the past week, the inflow of funds into Bitcoin ETFs was approximately $1.48 billion, indicating that mainstream capital remains optimistic about Bitcoin’s medium-term prospects. Meanwhile, since early January, about 36,800 BTC have been withdrawn from exchanges, further tightening the market’s circulating supply and providing structural support for prices.

From a supply and demand perspective, the continued accumulation by whales and declining liquidity have made Bitcoin more resilient under macro negative shocks. Compared to traditional assets, Bitcoin’s 24/7 trading and fixed total supply make it increasingly regarded as a hedge during rising trade frictions and policy uncertainties.

However, short-term volatility still exists. After the news was announced, Bitcoin briefly stayed near $95,000, then experienced a rapid correction, falling about 3%, and quickly rebounded about 4%, with the current price at $92,400 at the time of writing. Some analysts believe that this sharp fluctuation mainly results from retail investors’ emotional selling under sudden negative news, rather than deteriorating fundamentals.

A user on X platform, DefiTracer, pointed out that the market experienced a concentrated sell-off in a short period, but this did not change the long-term supply and demand structure. Compared to the deep correction triggered by trade conflicts in October 2025, this round of market movement is more characterized by high-level oscillation.

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