Stocks and Crypto Tick Up After Trump Drops Greenland-Linked Tariffs
US stocks and major cryptocurrencies rose modestly after former President Donald Trump announced he would not move forward with planned tariffs linked to Greenland. The S&P 500 closed up 1.16% following Trump’s statement on Truth Social that he had reached a framework for a deal on Greenland and the Arctic with NATO Secretary General Mark Rutte. Bitcoin (BTC) rose about 1.6% to roughly $90,010, while Ether (ETH) and Solana (SOL) gained roughly 3.0% and 2.4%, respectively. Crypto-linked equities reacted unevenly: MicroStrategy (MSTR) climbed ~2.2%, Coinbase (COIN) slipped ~0.35%, Riot Platforms fell ~4.7% and Marathon Digital (MARA) rose ~1.8%. Despite price gains, market sentiment weakened: the Crypto Fear & Greed Index dropped to an “extreme fear” score of 20. Analysts note that past tariff threats have often been over-attributed as causes for crypto moves, with retail traders quick to blame political headlines during downturns. Key keywords: Trump tariffs, Greenland, S&P 500, Bitcoin price, Ether, Solana, crypto sentiment.
Neutral
The news is categorized as neutral. Trump’s decision to drop Greenland-linked tariffs removed a short-term geopolitical risk that had the potential to dampen markets, producing a modest positive price response across equities and major cryptocurrencies (BTC, ETH, SOL). However, the market reaction was muted and uneven—crypto stocks moved in both directions and the Crypto Fear & Greed Index fell to “extreme fear.” That suggests traders treated the development as a relief rally rather than a catalyst for sustained bullish momentum. Historical parallels: political headline-driven relief rallies (e.g., tariff or sanction reversals) often produce short-lived price upticks but do not reverse broader bearish sentiment unless accompanied by fundamental drivers (regulatory clarity, institutional adoption, macroeconomic shifts). Short-term implications: increased intraday volatility and opportunity for quick long trades on relief-driven momentum; caution advised due to elevated fear sentiment and mixed sector reactions. Long-term implications: limited — unless followed by concrete policy or macro changes, the cancellation of this specific tariff threat is unlikely to materially alter crypto fundamentals. Traders should watch liquidity, on-chain activity, macro indicators (rates, dollar strength), and follow-up geopolitical or regulatory news to gauge sustainability.