Global financial markets breathed a sigh of relief after US President Donald Trump announced that Washington had reached a long-term framework agreement with NATO regarding Greenland, prompting the US to roll back planned new tariffs on European goods.
The move quickly eased fears of a renewed transatlantic trade conflict, which had weighed heavily on risk assets — from equities to cryptocurrencies — in recent sessions.
US Pulls Back the Tariff Card
Before the announcement, investors had been bracing for a scenario in which the US would impose a 10% import tariff starting February 1, potentially rising to 25% by June 2026 on goods from eight NATO countries in Europe, including Denmark, Germany, France, the UK, and the Netherlands.
According to Trump, the new framework fully meets US requirements on both national and international security and is designed to be “open-ended” in duration.
Sources say the agreement is not only about trade but also reflects Greenland’s growing strategic importance as Arctic ice melts, opening new shipping routes and access to mineral resources. Rolling back tariff threats is therefore seen more as a tactical adjustment than a fundamental shift in long-term policy.
Speaking to reporters, Trump said:
“The US has obtained everything we want, including national and international security under the proposed agreement.”
Crypto Markets Rebound
The most immediate reaction came from the cryptocurrency market. Bitcoin quickly rebounded toward $90,000, reversing from an intraday low near $87,200.
The recovery spread across altcoins. Ethereum reclaimed the key psychological level of $3,000, gaining about 2.2% on the day. More speculative retail favorites such as XRP, BNB, Solana (SOL), and Cardano (ADA) also bounced 2–5%.
However, fund flow data painted a more cautious picture. US spot Bitcoin and Ethereum ETFs have continued to see net outflows in recent sessions after attracting as much as $1.8 billion in inflows across four consecutive trading days from Jan. 12–15.
The rapid price reversal also triggered heavy liquidations in derivatives markets. Over the past 24 hours, around $631 million in leveraged positions were wiped out. During the final stage of the rally, short positions were liquidated aggressively, indicating many traders had bet the wrong direction, expecting macro pressure to keep weighing on prices.
Stocks Bounce, Gold Cools Off
Beyond crypto, US equities also “flipped higher” after Trump ruled out harsher measures related to Greenland. Previously, the S&P 500 had logged its sharpest drop since October.
In contrast, gold — the traditional safe-haven asset — cooled off after repeatedly setting records during the trade tension and monetary policy uncertainty. Spot gold unexpectedly reversed and fell below $4,800 per ounce in today’s session.
Risks Still Linger
Overall, the Greenland framework deal helped markets avoid a short-term shock and triggered a broad technical rebound. Still, the deeper geopolitical issues tied to Arctic security and long-term strategic interests suggest policy risks have not disappeared — they are merely being temporarily contained.
On prediction platform Polymarket, traders are increasingly leaning toward a scenario in which the US acquires part of Greenland, with support probabilities jumping after Trump’s decision to delay tariffs.
