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Bitcoin and global markets rallied sharply after US President Donald Trump said he would not move forward with tariffs related to Greenland. The announcement eliminated trade war fears that had confused investors earlier in the day.
Bitcoin rallied again towards $90,000, rebounding from intraday lows below $89,000, while Ethereum recovered towards $3,000 after briefly breaking below that level. US stocks also steadied, with the S&P 500 index rising after earlier losses. Gold, which rose thanks to geopolitical risks, reduced gains.
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Greenland’s tariff concerns prompted risk-averse steps
The market reaction came after Trump said that… A framework agreement was reached with NATO Secretary General Mark Ruttewhich reduced the likelihood of imminent trade actions against European allies.
Before the session, markets fell after the return of Trump and senior officials The Americans are reviving aggressive tariff rhetoric at the World Economic Forum in Davos.
Investors reacted to the renewed use of tariffs as geopolitical leverage, especially after treasurer Scott Besent defended tariffs as an effective negotiating tool.
Besant warned foreign governments against retaliating, saying, “Sit down and take a deep breath. Don’t retaliate,” while emphasizing that the tariffs remain central to America’s economic and security strategy.
The cryptocurrency markets have fallen with the stocks with the prices Investors face higher inflation risks, tighter liquidity conditions and renewed uncertainty in global trade.
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Bitcoin fell below $90,000, while Ethereum fell below $3,000, reflecting the sensitivity of cryptocurrencies to macro risk shocks.
Since this risk fades with the latest update from the president of the United States, the markets have changed. Risk assets are showing early signs of recovery. At the same time, it decreased Gold prices Immediately after the announcement.
Reverse validates macro-driven cryptocurrency flows
The rapid recovery highlights how connected the cryptocurrency markets are now With macroeconomic and political signalsespecially regarding inflation and trade.
Previous analyzes have shown that Customs duties imposed during the previous year It has been widely absorbed by American consumers. The data reinforces that fear Trade escalation renewed It could delay interest rate cuts and tighten financial conditions.
This backdrop has already affected digital assets since October, contributing to limited price movement and repeated failed rallies above key resistance levels.
Once the immediate threat of tariffs is removed, The appetite for risk is backwhich leads to short covering and spot buying in cryptocurrencies and stocks. The S&P 500 pares losses, while Bitcoin stabilizes after a volatile session.
While markets have welcomed the de-escalation, uncertainty remains. Trump said other discussions are still ongoing The strategic role of Greenland in missile defense and arctic security, suggesting that the problem has not been fully resolved.
