Bitcoin Offers No Haven From Trump's Greenland Dreams

Bitcoin hovered near $90,000 after U.S. President Donald Trump softened his rhetoric on Greenland and tariffs, lifting risk assets. The cryptocurrency rose to $89,766 on Thursday after earlier falling to $87,300. Trump’s speech at the World Economic Forum in Davos signaled a potential framework for a deal with NATO on Greenland.

The move followed a week of heavy liquidations and weekly losses for Bitcoin and Ethereum. Analysts noted that traders are monitoring for a base amid macroeconomic uncertainty. Ethereum traded at $2,999, with modest daily gains reported.

The market response reflected a broader shift in risk appetite. Trump’s announcement of a potential agreement eased concerns of a trade war with Europe. As a result, major equity indexes saw gains, with energy stocks leading the recovery.

Why the Move Happened

Trump’s shift in tone came after he announced a framework of a future deal with NATO regarding Greenland. The speech in Davos signaled a potential resolution to tensions over the Arctic island. Market participants interpreted the development as a de-escalation in U.S.-European trade tensions.

The U.S. president had previously threatened tariffs on European countries opposing his Greenland acquisition plans. This caused a sell-off in risk assets, including Bitcoin. Trump’s reversal reassured investors who had feared a new trade dispute.

How Markets Responded

Bitcoin’s price rebounded after Trump backed away from the tariff threats. The cryptocurrency rose from $87,300 to above $90,000 within hours. This reaction demonstrated the market’s sensitivity to geopolitical developments.

Equity markets also benefited from the easing tone. The S&P 500, Nasdaq 100, and Russell 2000 all saw gains. Energy stocks outperformed other sectors. As reported, gold and silver initially dipped as risk appetite improved but quickly rebounded.

What Analysts Are Watching

Analysts are cautious about the sustainability of the current market rally. Vikram Subburaj of Giottus said crypto markets appear range-bound until policy clarity emerges. Position sizes and risk management remain critical for traders amid high volatility.

According to Riya Sehgal of Delta Exchange, the relief rally following Trump’s announcement. Traders are monitoring for confirmation of a base amid ongoing macroeconomic uncertainty. Institutional demand for Bitcoin ETFs is showing signs of fading, capping further gains.

Exchange inflows during corrections have been temporary, indicating tactical adjustments rather than panic selling. However, sustained inflows would signal deeper concerns about Bitcoin’s value proposition. Long-term holders appear to be maintaining their positions despite recent volatility.

The market’s focus now turns to upcoming data and policy signals. As Trump continues to advocate for a pro-crypto stance, investors are watching for legislative developments. The path forward remains uncertain amid shifting trade policies and geopolitical risks.