Trump Calls Off Greenland Tariffs; Bitcoin Sees Large Volatility
US President Donald Trump said via Truth Social that planned tariffs on several European countries tied to Greenland — scheduled for Feb 1 — will not proceed after productive talks with NATO Secretary-General and Dutch PM Mark Rutte that produced a framework for a Greenland/Arctic agreement. The cancellation eased immediate geopolitical risk and triggered sharp intraday moves across risk assets, notably cryptocurrencies. Bitcoin rallied to roughly $90,000, dropped to about $87,000, then rebounded to $90,000 at reporting, producing around $1 billion in liquidations and a ~40% rise in 24‑hour liquidations. Major altcoins outperformed BTC in percentage gains; Ethereum and several layer‑1, DeFi and meme tokens posted outsized moves as traders rotated into higher‑beta assets. For crypto traders, the story underscores that macro and geopolitical headlines (trade policy, tariffs) remain primary short‑term drivers of price action and can both relieve and amplify volatility, creating rapid trading dislocations and liquidation risk.
Neutral
The immediate cancellation of planned Greenland-related tariffs removed a key near-term geopolitical risk, which is normally bullish by reducing downside tail risk for risk assets including Bitcoin. However, the market reaction was dominated by heightened volatility and large intraday moves — BTC spiked, plunged, and rebounded within hours, triggering roughly $1 billion in liquidations. That pattern indicates uncertainty and increased short-term trading dislocations: beneficial for directional traders and volatility sellers, risky for leveraged positions. In the short term, expect continued choppy price action and elevated liquidation risk as traders reprice geopolitical tail risk and rotate into higher‑beta altcoins. Over the medium to long term, absent further escalation or new policy shocks, removing an immediate tariff threat is modestly positive for risk assets, suggesting a slightly constructive backdrop for Bitcoin — but the net price impact remains mixed because the announcement primarily produced volatility rather than a sustained trend.