Greenland PM Warns on U.S. Threat as Davos Tensions Rise

• Greenland tensions remain low-risk, but NATO presence highlights rising Arctic security concerns.
• EU leaders signal unity, weighing rare trade retaliation tool against U.S. pressure.
• Bitcoin drops below key support as geopolitical risks drive caution across markets.

Greenland’s government is urging residents to stay calm but alert as President Donald Trump again signals interest in taking control of the Arctic territory. Prime Minister Jens-Frederik Nielsen said the risk of a U.S. military conflict remains low. 

However, he warned it still cannot be ruled out, especially as security tensions rise across the region. His comments come as Greenland hosts military forces from Denmark and seven other NATO countries, strengthening readiness while trying to avoid panic.

Davos Leaders Push Back on Washington

Significantly, Greenland has become a major topic of discussion at the World Economic Forum in Davos, where several European leaders criticized Trump’s position. California Governor Gavin Newsom accused global leaders of showing weakness and urged them to resist U.S. pressure. He said stronger unity would give Europe more leverage in any confrontation.

Additionally, European Commission President Ursula von der Leyen promised a firm response to U.S. tariff threats. She said Europe would stay united while showing solidarity with Greenland and Denmark. 

Belgian Prime Minister Bart De Wever also warned that Europe could lose its dignity if leaders back down. He argued that European countries must act together rather than wait for U.S. demands.

EU Considers Trade “Bazooka” Response

Moreover, European leaders have discussed using the EU’s Anti-Coercion Instrument to counter U.S. economic pressure. The rarely used tool could allow tariff retaliation or market restrictions if Europe views U.S. actions as coercive. 

French President Emmanuel Macron called the situation unreasonable, since the option has never been used before. Still, some political figures in France say Europe must activate it to protect sovereignty.

However, U.S. Treasury Secretary Scott Bessent urged European governments not to escalate. He advised leaders to pause and avoid decisions that could deepen tensions. His remarks reflected concerns that economic retaliation could quickly spiral into broader confrontation.

Bitcoin Slides as Geopolitical Anxiety Builds

Consequently, markets also showed strain as Bitcoin fell sharply during the latest wave of uncertainty. Bitcoin traded near $89,358 at press time, down 3.76% in 24 hours and 5.37% for the week, priced below $90,000. The decline followed a breakdown below the $94,000 support zone, which had held for several sessions.

Related: Trump’s Greenland Gambit Is Turning Into a Crypto Prediction Trade