US stock markets and cryptocurrencies rose slightly on Wednesday after US President Donald Trump announced that he would not proceed with the planned introduction of tariffs on selected European countries. Markets reacted to the unexpected easing of trade tensions between the United States and Europe.
The S&P 500 index ended the trading day with a gain of 1.16%. The impetus came just hours after Trump said on his Truth Social network that he had had a “very productive meeting” with NATO Secretary General Mark Rutte and that the tariffs, planned for February 1, would not be implemented.
The original proposal was to affect eight European countries: Denmark, Norway, Sweden, the United Kingdom, France, Germany, the Netherlands, and Finland. However, Trump never disclosed the specific form of the measures or how the tariffs would be technically implemented.
“We have created a framework for a future agreement on Greenland and, in fact, the entire Arctic region. If this agreement is fulfilled, it will be a great solution for the United States and all NATO countries,” Trump said.
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Cryptocurrency stocks without a unified direction
While the broader stock market responded with growth, cryptocurrency stocks showed mixed results. Strategy (MSTR), led by Michael Saylor, rose 2.23%. In contrast, shares in the Coinbase (COIN) crypto exchange fell slightly by 0.35%, according to Google Finance data.
The reaction of mining companies was also mixed. Riot Platforms fell 4.70%, while Mara Holdings (MARA) added 1.83%.
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Bitcoin above $90,000, Ether and Solana on the rise
Major cryptocurrencies moved slightly higher after Trump’s announcement. Bitcoin rose 1.64% to $90,010. Ethereum gained 3.03% and Solana 2.36%, according to CoinMarketCap data.
Although the movement is relatively modest, it confirms that geopolitical uncertainty—especially in the area of trade—has a direct impact on digital assets. Cryptocurrencies thus remain sensitive to political signals from Washington, similar to traditional financial markets.
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Market sentiment is deteriorating
Despite the price increase, however, overall sentiment in the crypto world is deteriorating. The Crypto Fear & Greed Index fell to 20 on Thursday, which corresponds to the “extreme fear” category. This is a drop of four points compared to Wednesday.
This suggests that investors remain cautious. The market does not yet perceive the price increase as a sufficient signal for a turnaround in sentiment. Uncertainty about the future development of the global economy, geopolitical relations, and cryptocurrency regulation continues to keep investors on their toes.
Sources:
https://truthsocial.com/@realDonaldTrump/posts/115934734335579278
https://www.google.com/finance/quote/MSTR:NASDAQ?hl=en
https://alternative.me/crypto/fear-and-greed-index
