How Trump’s tariff threat cycle broke from past playbook for the first time causing Bitcoin to miss Sunday night relief rally

The market reacted negatively on Monday morning as President Trump's threat of a 10% tariff on European allies over Greenland escalated from geopolitical theater into a genuine trade shock, impacting risk assets like Bitcoin. This episode deviated from the established 'tariff cycle' playbook, which typically involves a Sunday night futures rally acting as a pressure release valve before the Monday open. In this case, the threat hardened over the weekend, and the subsequent diplomatic fallout, including a bizarre letter from Trump to Norway's PM, widened the narrative beyond economics. Crucially, the expected Sunday night futures pop did not materialize; instead, U.S. futures and Bitcoin sank into Monday, suggesting the market is stuck in an escalation phase (Step 5 of the playbook) rather than moving toward the anticipated de-escalation. For crypto traders, this break from the predictable pattern—especially the missing relief rally—reignited fears reminiscent of the October liquidation cascade, as the situation lacks a clear off-ramp.

(Source：CryptoSlate)