Political Turmoil Sends Bitcoin Price in USD Tumbling as Market Faces Multi-Front Headwinds

The bitcoin price in USD experienced significant downward pressure recently following a wave of policy uncertainty and broad market liquidations. Major geopolitical developments, combined with macro volatility, created a perfect storm that caught leveraged traders off guard. The cryptocurrency dropped sharply during an intense selling session, with massive forced position closures cascading across the market as traders scrambled to manage their exposure.

The volatility stems from multiple concurrent pressures. A significant policy announcement regarding trade relations sparked immediate market reaction, triggering what market data shows was over $500 million in liquidated long positions within a concentrated timeframe. This selling wave demonstrated how sensitive the crypto market has become to macro policy shifts and geopolitical risk factors. Bitcoin’s technical structure proved vulnerable to these sudden demand shocks.

Trade Policy Uncertainty Reshapes Bitcoin Price Dynamics

The current bitcoin price in USD reflects broader anxieties about U.S. trade policy direction. President Trump’s announcement of proposed tariffs on eight European nations beginning February 1 — initially at 10% and rising to 25% by June 1 — injected significant uncertainty into financial markets globally. These measures, framed around efforts to secure Greenland, have sparked heated responses from affected nations including Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.

European leaders issued a joint statement warning of a “dangerous downward spiral,” with Danish Prime Minister Mette Frederiksen stating that Europe “will not be blackmailed.” The diplomatic fallout extended to street-level protests across Copenhagen and Greenland, signaling widespread political resistance to the proposed tariffs. This geopolitical tension directly translated into market risk-off behavior.

Supreme Court Ruling Looms as Key Bitcoin Price Catalyst

Beyond immediate tariff announcements, a U.S. Supreme Court decision could fundamentally reshape the policy landscape. The court is set to rule on whether Trump possessed constitutional authority to invoke emergency powers for broad trade restrictions under the International Emergency Economic Powers Act (IEEPA). A ruling against the administration could force refunds exceeding $100 billion in previously collected tariffs, with substantial implications for federal budget allocations tied to defense and infrastructure spending.

If the court upholds the executive authority to impose tariffs via emergency declaration, existing duties remain intact and new European tariffs could proceed as planned. This binary outcome creates acute uncertainty that market participants must price into asset valuations, including the bitcoin price in USD.

Current Bitcoin Price in USD and Market Recovery Trajectory

As of the latest data available, Bitcoin has stabilized in the mid-$88K USD range following the acute selling pressure. The cryptocurrency now trades at approximately $88,530 USD, reflecting a 7-day decline of about 4.5% from recent highs. Over the past 24 hours, the bitcoin price in USD has actually posted modest gains of roughly 1%, suggesting that initial panic selling has begun to stabilize.

The broader market capitalization now sits around $1.77 trillion USD, with 24-hour trading volume reaching approximately $990 million USD. Bitcoin’s circulating supply remains at approximately 19.98 million coins, with a maximum cap fixed at 21 million. Gold also benefited from risk-off sentiment, climbing to fresh all-time highs near $4,670 during the same period.

The recovery pattern suggests that while the bitcoin price in USD remains pressured by macro uncertainty, the acute liquidation cascade appears to have run its course. However, the sustainability of this stabilization depends heavily on whether policy clarity emerges from Washington, and whether the Supreme Court’s forthcoming decision provides direction to markets currently trapped between competing policy scenarios.