Gold and silver prices hit record highs, while Bitcoin declined due to Trump's tariff threat

Recently, the global financial markets experienced intense volatility due to a sudden geopolitical development. Former U.S. President Trump publicly threatened that if Greenland is not sold to the United States, tariffs would be imposed on imports from several NATO allies including Denmark and Norway, initially at 10%, potentially rising to 25%. This tariff threat rapidly unsettled the markets, triggering a classic rotation of funds between safe-haven assets and risk assets. The traditional safe-haven kings—gold and silver—spiked sharply, both reaching new historical price records; meanwhile, Bitcoin, representing digital assets, faced a brief pressure and experienced a significant decline. This article will analyze the market logic behind this event and, using the latest market data from the Gate platform, examine the current state of the cryptocurrency market.

Safe-haven sentiment dominates: Why are gold and silver hitting record highs?

Whenever global geopolitical tensions escalate or unpredictable economic policy threats emerge, investors’ first instinct is often to seek “safe havens.” Precious metals, especially gold and silver, due to their physical properties, historical status, and globally recognized store of value, are the preferred safe-haven assets.

This time, Trump’s tariff threat directly targeted key U.S. allies, which could not only trigger trade friction but also be interpreted by the market as a major risk event that could destabilize the transatlantic alliance. This uncertainty led to:

• Surge in capital safe-haven demand: institutional and individual investors moved funds from higher-risk assets (such as certain stocks and emerging market assets) into gold and silver.
• Hedging against currency devaluation expectations: the tariff war could trigger economic volatility and subtle shifts in confidence in the dollar, increasing gold’s appeal as a non-sovereign credit asset.
• Technical buying momentum: after prices broke through key psychological historical levels, algorithmic trading and trend-following funds intensified buying, pushing gold and silver prices to continually hit new records.

This phenomenon clearly indicates that, in the face of macro-political risks, the traditional financial market’s safe-haven paradigm remains strong.

Short-term reaction of Bitcoin: Testing the narrative of digital gold

Contrasting with the strong performance of gold and silver, Bitcoin’s price experienced a sharp decline shortly after the news, dropping over $4,000 at one point. This sparked discussions about whether the “Bitcoin as digital gold” narrative would hold in the short term.

Bitcoin’s decline mainly reflects several market psychology factors:

• Liquidity extraction: some investors may have sold Bitcoin and other liquid assets to cover losses elsewhere or meet margin calls, a common “liquidity-selling” behavior during panic.
• Risk asset characteristics: in the initial phase of extreme risk events, Bitcoin was still viewed by some traditional funds as a high-risk speculative asset, leading to capital outflows.
• Derivatives market liquidation chain reactions: intense price swings triggered forced liquidations of leveraged long positions, creating a short-term “longs killing longs” scenario, which exacerbated the downward trend.

However, this short-term decoupling does not necessarily negate Bitcoin’s long-term store-of-value potential. Historical data shows that Bitcoin has a positive correlation with gold during certain macro uncertainties (such as monetary oversupply); yet, during sudden political shocks, its short-term reaction may resemble that of risk assets. This wave of volatility is a test of market maturity and investor structure.

Market focus on Gate: Bitcoin (BTC) current market overview

As of January 20, 2026, according to the latest market data from the Gate platform, Bitcoin has shown the following trend after experiencing volatility:

Bitcoin (BTC) core data (Gate Market):

• Current price: $92,653.5
• 24-hour change: -2.55%
• 7-day change: +1.30%
• Market cap: $1.84 T (accounting for 56.42% of total cryptocurrency market cap)
• 24-hour trading volume: $739.88 M
• 24-hour price range: $92,161.6 - $93,409.7
• All-time high: $126,080
• Circulating supply: 19.97 M BTC

From the data, Bitcoin’s price has pulled back after the shock, but the $92,000 level shows some support. Its market cap share remains dominant at 56.42%, indicating the core focus of the market has not shifted. The recent increased volatility and active 24-hour trading volume reflect market pricing and positioning in response to new information.

Future outlook: Divergence, correlations, and opportunities on Gate

This event reveals the differentiated responses of various asset classes to the same risk source. For investors, understanding the driving logic of assets across different cycles is key.

• For precious metals: short-term upward momentum driven by sentiment requires support from fundamentals (such as real interest rates, central bank gold purchases). Whether gold and silver can maintain their record highs depends on whether geopolitical tensions escalate further or gradually ease.
• For cryptocurrencies: Bitcoin’s short-term correction can be seen as an adjustment and pressure release after its previous rally. Looking at longer-term data from Gate, Bitcoin’s 30-day gain remains at +5.13%, and its year-to-date performance (-11.42%) is negative, but should be viewed within its larger cyclical context. Market consensus suggests an average price around $92,439.9 in 2026, with a potential fluctuation range of $69,329.92 to $110,927.88 within the year. From a long-term perspective, some models based on scarcity and adoption rate project outlooks until 2031, but with multiple potential paths and significant volatility.
• Asset allocation insights: this wave of volatility highlights the importance of diversification. Whether it’s traditional gold and silver or emerging Bitcoin, their price drivers are not always aligned. Platforms like Gate, offering multi-asset trading services, enable investors to observe market trends more flexibly and manage portfolio risks effectively.

Conclusion

Trump’s tariff threat was like a stone thrown into a lake, instantly creating ripples across traditional financial markets and the crypto space. Gold and silver hitting new highs demonstrate their ultimate safe-haven appeal during crises; meanwhile, Bitcoin’s brief decline reflects its complex and evolving asset profile. Markets always seek balance amid uncertainty.

As a leading global cryptocurrency trading platform, Gate is committed to providing users with real-time, accurate market data, in-depth analysis, and a secure trading environment. In a rapidly changing market, staying calm and making decisions based on reliable data is crucial. Whether you are a traditional market observer focusing on gold and silver trends or a crypto enthusiast exploring new frontiers, Gate is your trusted partner for information and strategy implementation.