The crypto market surged after U.S. President Donald J. Trump announced the suspension of planned tariffs on some European countries. The Trump tariffs were initially scheduled to take effect on February 1 as the U.S. sought to pressure these nations over Greenland.
Crypto Market Recovers As U.S. Cancels Trump Tariffs
Trump posted on Truth Social that a meeting with the NATO Secretary General Mark Rutte saw the decision made after an effective meeting with the General. The negotiations were on Greenland and the Arctic region in general.
This development comes just hours after the Trump Davos speech, in which the U.S. president spoke on the U.S. plans to acquire Greenland. Trump stated that the two parties have developed a basis for a future deal. He mentioned that the outcome will favor the United States and NATO members.
The imminent tariffs were removed, and global trade-related anxieties were alleviated. Trump ensured that negotiations would proceed under senior officials in the U.S and that they would be reporting to him.
More talks are also underway regarding strategic infrastructure in Greenland. Nevertheless, a time frame for an agreed final outcome was not provided. The change in tone and cancellation of the Trump tariffs were soon reflected in the crypto market.
The Bitcoin price rallied to $90,000 on the back of Trump’s announcement. BTC had dropped to as low as $87,000 earlier in the day amid fears of the trade tensions between the U.S. and Europe. The flagship crypto is trading at around $90,100 at press time, according to TradingView data.
Source: TradingView; Bitcoin Daily ChartThe move to cancel the Greenland-linked Trump tariffs also led to gains for altcoins as risk sentiment improved. Ethereum rose to as high as $3,030. XRP was the biggest gainer among large-cap tokens, rising by almost 4%. Solana was up almost 3%. The total crypto market is now up almost 2% on the day, rising above $3 trillion in the process.
Arctic Security Becomes Focus of Greenland Discussions
New information shows that talks on Greenland have moved beyond trade relief to include Arctic security planning. A spokesman for NATO, quoted by journalist Walter Bloomberg, claimed that there are discussions on joint security for the Artic with allies. The framework by Donald J. Trump is based on collaboration between the seven Arctic NATO allies, according to the spokesperson.
In a different post by Walter, NATO affirmed that there is an agreement between Denmark, Greenland and the United States to keep Greenland from the economic powers of Russia and China. According to these statements, it is evident that NATO is focused on the coordination of alliances and not on having unilateral authority.
Further coverage in The New York Times indicate that negotiations also included discussions on pocket-sized land acquisitions as opposed to acquiring large expanse of land.
The change in clarity was reflected by market reaction. Kalshi prediction markets data indicated a 56% increase in the chances of Trump buying some parts of Greenland before 2027.
Source: KalshiSource: https://coingape.com/trump-tariffs-crypto-market-rises-as-u-s-cancels-greenland-linked-tariffs-on-europe/
