President Trump's 2026 tariff threats against Europe, linked to the acquisition of Greenland, have led to significant declines in the cryptocurrency markets. Bitcoin, Ethereum, and Solana experienced notable drops as geopolitical tensions intensified, with the market losing over $110 billion in capitalization. The European Union responded by freezing the ratification of a U.S. trade deal, further escalating the situation. The U.S. administration's stance has created a risk-off environment for crypto investors, as highlighted by Russell Thompson, Chief Investment Officer at Hilbert Group. The potential tariff increases, set to take effect in February 2026, add to the uncertainty, impacting global markets and investor sentiment. Manfred Weber, President of the European People’s Party, confirmed the EU's decision to halt trade deal progress in response to the U.S. threats.