Bitcoin fell 2.8% to $92,519 in Asian trading, erasing last week's 5% recovery. The drop came after U.S. President Donald Trump threatened 25% tariffs on major European nations over Greenland, triggering a broad sell-off in risk assets. Broader crypto prices also declined, with $869 million in positions liquidated in the past 24 hours.

The trade war fears spooked global markets, with investors fleeing speculative assets like crypto for traditional safe havens like gold. Trump's demands for Greenland have been rejected by European leaders, raising fears of a NATO dissolution and military action. This geopolitical uncertainty directly dampens the risk appetite needed for volatile investments like cryptocurrency.

A delay in a long-awaited U.S. regulatory framework bill for crypto added to the negative sentiment. Lawmakers postponed discussion after objections from industry voices, including Coinbase. The combined pressure from tariffs and regulatory uncertainty has erased the mild recovery crypto saw last week, leaving sentiment fragile heading into the new week.