Trump Says U.S. Won’t Seize Greenland by Force — Gold Drops $40, Bitcoin Rallies Above $89K
At the World Economic Forum in Davos on Jan 21, 2026, U.S. President Donald Trump stated the United States will not use military force to acquire Greenland and favors negotiations over coercion. He reiterated Greenland’s strategic value to U.S. and NATO security but framed acquisition as a diplomatic request rather than a military move. The softer stance followed prior comments that left the use of force as an option and threatened trade measures against uncooperative European allies. Markets reacted quickly: spot gold fell about $40 on reduced geopolitical risk (quoted near $4,845/oz in the report), while bitcoin rose roughly 0.8%, briefly breaking above $89,000 (reported at $89,600). Ethereum also rebounded toward $3,000. Traders should note the immediate market impact was driven by eased geopolitical uncertainty, which temporarily reduced demand for safe-haven assets while boosting risk assets like cryptocurrencies.
Neutral
The news reduces immediate geopolitical risk by removing the threat of U.S. military action over Greenland. Historically, declines in geopolitical tension tend to weaken safe-haven demand (gold, USD) and can lift risk-on assets, including equities and crypto. The reported reaction — gold down ~$40 and bitcoin up ~0.8% to $89.6K — reflects a short-term risk-on move. However, the underlying drivers (strategic value of Greenland, ongoing political rhetoric, potential trade tensions) remain unresolved and could re-escalate. For traders: expect a short-term bullish tilt for cryptocurrencies and risk assets while volatility may remain elevated; positioning should account for swift reversals if rhetoric hardens or related policy actions (tariffs, sanctions) follow. In sum, the impact is immediate but likely transient — not a structural market pivot — so categorize as neutral overall with short-term bullish impulses for crypto.