Trump Cancels EU Tariffs — Stocks Jump, Crypto Lags
President Trump announced the cancellation of planned EU tariffs and proposed a framework for a Greenland deal. Financial markets reacted quickly: S&P futures rose ~0.6% and Nasdaq moved through resistance, driving a broad stock rally. The author notes equities and risk assets rallied while cryptocurrencies, including Bitcoin and Ethereum, remained muted and failed to follow the stock bounce. The piece frames this divergence as puzzling for traders: bullish fiscal/trade news lifted equities and risk sentiment, but crypto market drivers (liquidity, macro flows, derivatives positioning) did not respond in the same way. Key takeaways for traders: monitor macro headlines (tariff policy) for sudden risk-on moves in equities; expect crypto to lag such macro relief unless accompanied by direct monetary/liquidity signals or crypto-specific catalysts; watch Bitcoin (BTC) and Ethereum (ETH) support/resistance and derivatives liquidations for short-term trade setups.
Neutral
The news is a market-level macro policy development that lifted risk sentiment in equity markets (S&P futures +0.6%, Nasdaq breakout) but did not include direct monetary easing or crypto-specific support. Historically, trade-policy de-escalation and positive fiscal headlines tend to be bullish for equities and risk-on assets; crypto has sometimes followed these moves but often requires liquidity flows, spot-demand, or sector-specific catalysts to sustain gains. Because this announcement raises equity risk appetite but offers no clear incremental liquidity for crypto, the immediate impact on crypto is neutral: it removes a macro downside risk (mildly constructive) but is unlikely to drive a strong, sustained crypto rally without further monetary or on-chain demand signals. Short-term traders should watch BTC and ETH technical levels and derivatives funding/liquidations for momentum; long-term holders should monitor follow-up policy, central bank reactions, and on-chain adoption indicators. Comparable past events: trade de-escalations in 2019 boosted stocks while crypto gains were muted until coincident liquidity/easy-rate signals (e.g., 2020 QE) appeared.