Daily Market Update: Trump’s Greenland Tariff Threat Sends Markets Lower

TLDR

• Bitcoin traded around $92,000 on Tuesday while US stock futures dropped more than 1% following Trump’s tariff announcement
• President Trump threatened 10% tariffs on eight European countries starting February 1, rising to 25% by June 1 over Greenland negotiations
• Dow futures fell 550 points, S&P 500 futures dropped 1.2%, and Nasdaq futures declined 1.4% in early trading
• European Union prepared retaliatory tariffs worth approximately $108 billion in response to Trump’s threats
• Asian markets declined with Japan’s Nikkei down 0.8% while Treasury yields hit four-month highs at 4.265%

Stock and crypto markets opened Tuesday under pressure after President Trump announced sweeping tariff plans targeting European allies. The move reignited trade war concerns and sent futures lower across major indexes.

Bitcoin held steady near $92,000 despite the broader market weakness. The cryptocurrency showed resilience with only a 0.4% decline. Ether fell 0.8% to $3,183 while the total crypto market cap decreased 0.3% to $3.21 trillion.

US stock futures signaled trouble ahead for Wall Street’s return from the holiday weekend. Dow Jones futures dropped 1.1%, pointing to a 550-point loss at the opening bell. S&P 500 futures slipped 1.2% while Nasdaq 100 futures sank 1.4%.

Trump posted on Truth Social Saturday that the US would impose tariffs on eight NATO countries. Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain all face the new duties. The tariffs start at 10% on February 1 and increase to 25% by June 1 unless Greenland purchase talks begin.

European leaders rejected the demands immediately. Officials called the tariff threat unacceptable and began planning countermeasures. The EU is considering reactivating a suspended tariff package valued at €93 billion.

Asian Markets Decline on Trade Fears

Markets across Asia felt the impact of the tariff news. Japan’s Nikkei index fell 0.8% while the broader MSCI Asia-Pacific gauge dropped 0.44%. European futures also pointed lower as trading began.

Currency and bond markets reacted to the developments. The dollar weakened while the 10-year Treasury yield climbed to 4.265%, its highest point in over four months. Safe-haven assets like gold stayed near record levels and the Swiss franc attracted buyers.

Crypto analysts at Bitfinex said Bitcoin demonstrated early signs of improvement. The digital asset broke through resistance between $94,000 and $95,000, triggering the largest short squeeze in nearly 100 days. Strong spot buying supported the price recovery.

Long-term Bitcoin holders reduced their selling activity. Realized profits fell to approximately 12,800 BTC per week, well below previous cycle peaks. Analysts said a sustainable rally requires maturation supply to exceed long-term holder distribution.

Markets Face Busy Week Ahead

Trump will address the World Economic Forum in Davos on Wednesday. The speech keeps trade policy at the forefront as markets digest the tariff timeline. Treasury Secretary Scott Bessent said Sunday he believes courts are unlikely to block the tariff authority.

The Supreme Court may rule this week on Trump’s use of emergency economic powers for tariffs. The decision could impact the administration’s trade strategy going forward. Wall Street closed last week with losses across all three major indexes.

Earnings season adds another layer of focus for investors. Netflix, Intel and Johnson & Johnson report results this week. Analysts project S&P 500 earnings growth between 12% and 15% for the year. Corporate guidance will be closely watched as trade tensions escalate.

Europe’s Anti-Coercion Instrument remains on the table as a response tool. The mechanism was designed specifically for high-pressure trade disputes. Regional officials continue discussions on the appropriate response to Trump’s February 1 deadline.

The post Daily Market Update: Trump’s Greenland Tariff Threat Sends Markets Lower appeared first on Blockonomi.