Tech index futures, crypto stocks drop as US-Europe trade tensions rise, Bitcoin falls

U.S. tech index futures are under pressure ahead of the market open, driven by concerns over President Donald Trump's rebuffed efforts to take over the Danish territory of Greenland and the threat of mutual tariffs between the world's largest economy and a group of European nations.

The Invesco QQQ Trust Series, an exchange-traded fund that tracks the tech heavy Nasdaq 100 index, is down 2% in pre market trading following the long weekend to mark Martin Luther King Jr. Day on Monday.

Trump indicated he was prepared to impose a new 10% tariff on Denmark and some other European countries, which are reportedly prepared to impose retaliatory taxes on U.S. imports. Prediction markets suggest a low chance of a breakthrough, with Polymarket pricing just a 20% possibility that Trump is able to acquire Greenland before 2027.

Bitcoin fell to as low as $90,000 on Tuesday, now down 8% from Thursday's high, dragging crypto related equities lower. Strategy (MSTR) is down 6% to $164, Galaxy Digital (GLXY) is down 8% to $32, and IREN (IREN) is down 8% to $53.

Coinbase (COIN) and Circle Internet (CRCL) both fell around 5% while broader tech weakness persists, with all Magnificent Seven stocks priced 1%-3% lower.

Gold, traditionally a haven in times of upheaval, and silver continue to rise. Gold is trading above $4,700 per ounce, up 9% year to date, while silver has pushed above $95 per ounce, adding 32% in the same period.

U.S. Treasury yields rose and Japanese long-dated bonds remain under significant pressure. Yields on Japan’s 30 year government bonds, which rise when prices fall, have surged close to 4%, marking a sharp move higher and underscoring global bond market stress.

The DXY index, a key indicator of dollar strength against a basket of major currencies, has fell 0.5% to 98.5.