Crypto Market Sighs Relief After Trump Drops EU Tariff Threats

TheNewsCryptoОпубліковано о 2026-01-22Востаннє оновлено о 2026-01-22

Анотація

U.S. President Donald Trump reversed his earlier stance by announcing he will not impose tariffs on eight European nations, bringing relief to financial markets. The crypto market responded positively, with its global market cap rising 0.31% to $3.04 trillion. Major cryptocurrencies like Bitcoin, Ethereum, and BNB saw slight recoveries, with BTC trading at $89,870.96 and ETH at $3,013.23. U.S. stock markets, including the Nasdaq and S&P 500, also rebounded with gains of 1.3% and 1.2%, respectively. The announcement came alongside ongoing discussions regarding Greenland and signals from the Federal Reserve that interest rates may remain unchanged until at least March 2026.

US President Donald Trump has said that he would neither apply force to acquire Greenland nor will he impose tariffs on 8 European nations. This is in contrast to what he said earlier. The crypto market has sighed relief by noting a slight recovery in every possible manner. US markets have also rebounded to some extent.

Crypto Market Relieved

The crypto market is now a bit relaxed since Trump’s recent announcements. Its global market cap has surged by 0.31% to $3.04 trillion. Top tokens in terms of market cap, like BTC, ETH, and BNB, have also demonstrated signs of recovery. For instance, Bitcoin tokens are up by 0.16% over the last 24 hours, and are trading at $89,870.96.

Similarly, ETH has climbed by 0.83% during the same timeline to exchange hands at $3,013.23 when the article is being written. BNB is listed at $890.35, up by 0.82% at the moment. Notably, ETH has slipped the most in the last 7 days by shedding almost 9.19% of its value. Nevertheless, current trading values are underlining a slight recovery.

Trump’s U-Turn on European Tariffs

Donald Trump earlier seemed hell-bent to impose tariffs on eight European nations effective February 01, 2026, with a revision due in June this year. However, he has reversed that decision by announcing that he will now impose these tariffs.

The announcement was shared by The White House, mentioning that additional discussions are underway concerning The Golden Dome, which is related to Greenland.

Trump has pushed tariffs aside and confirmed that negotiations that happen will be under the participation of JD Vance, Marco Rubio, and Steve Witkoff. Suffice it to say, eight European nations don’t have tariffs coming their way this February as per Trump’s recent announcement.

US Stock Markets Mirrored Crypto Market Sentiment

Nasdaq and S&P 500 have recovered as well. They gained 1.3% and 1.2% in the late afternoon, respectively. This comes a day after both, and Dow, declined significantly. This added volatility to the crypto market, with the same supported by 97.6% chance of no rate cut.

It is now reported that the US Federal Reserve may not cut rates till March 2026, or hold them the same through the tenure of Chair Jerome Powell, which ends in May this year.

This is based on the expectation that the US economy would continue to grow, considering inflation is still below 3%. It was last noted to be 2.78% on December 31, 2025.

Highlighted Crypto News Today:

David Sacks Says Banks and Crypto Will Merge Into One Digital Asset Industry

Пов'язані питання

QWhat was the crypto market's response to Trump's announcement about not imposing tariffs on European nations?

AThe crypto market sighed relief and noted a slight recovery, with the global market cap surging by 0.31% to $3.04 trillion.

QWhich cryptocurrencies showed signs of recovery following the news, and what were their price changes?

ABitcoin (BTC) was up by 0.16% to $89,870.96, Ethereum (ETH) climbed by 0.83% to $3,013.23, and BNB increased by 0.82% to $890.35.

QWhat was the initial plan for tariffs on European nations, and how did Trump change it?

ATrump initially planned to impose tariffs on eight European nations effective February 1, 2026, but he reversed this decision and announced that he will not impose these tariffs.

QHow did US stock markets react to the news, and what were the gains for Nasdaq and S&P 500?

AUS stock markets rebounded, with Nasdaq gaining 1.3% and S&P 500 gaining 1.2% in the late afternoon.

QWhat is the current expectation regarding the US Federal Reserve's interest rate cuts?

AThe US Federal Reserve may not cut rates until March 2026 or hold them the same through Chair Jerome Powell's tenure, which ends in May this year, due to expectations of continued economic growth and inflation below 3%.

Пов'язані матеріали

Can Japan Buy Growth with AI? Will the Bond Market Believe It?

Japan's cabinet has introduced the 2026 Basic Policy on Economic and Fiscal Management and Reform, shifting its primary fiscal target. The new framework moves away from the traditional annual primary balance goal and instead prioritizes a stable reduction of the debt-to-GDP ratio. This change is tied to a strategy of increased "responsible proactive fiscal" spending, aiming to boost long-term growth through investments in strategic sectors like AI, semiconductors, energy, and robotics. The government estimates total public and private investment in 62 key technologies could exceed 370 trillion yen by 2040. The market reaction has been mixed and cautious. While equity markets may respond to policy signals, bond markets are focused on fiscal credibility. Concerns center on whether the weakening of the clear primary balance anchor could lead to looser fiscal discipline. If investors doubt that these strategic investments will generate sufficient productivity gains, tax revenue, and nominal growth to outpace rising interest costs, they may demand higher yields on Japanese Government Bonds (JGBs). Recent volatility in the yen and JGB yields, with the 10-year yield briefly reaching 2.9%, reflects this skepticism. The success of this new framework hinges on two factors: whether Japan can achieve a nominal growth rate consistently higher than its long-term interest rates, and whether future budgets demonstrate disciplined control over bond issuance. The government's narrative is that strategic investment is essential to break Japan's cycle of low growth, aging, and labor shortages. However, the bond market will continuously assess the credibility of this plan, pricing the risk that it may represent fiscal expansion rather than a viable growth strategy.

marsbit3 хв тому

Can Japan Buy Growth with AI? Will the Bond Market Believe It?

marsbit3 хв тому

Misjudged A-Shares: Resilience, Expectations, and Confidence

China's A-share market recently faced selling pressure, especially in tech sectors, initially triggered by a global tech sell-off that began in South Korea. However, the article argues this is a case of "mistaken injury" and highlights the market's underlying resilience. This resilience stems from three main pillars: **1) Tech Sector Fundamentals:** Unlike Korea's market dominated by a few memory chip stocks, China's tech sector is diversified across computing, communications, electronics, and semiconductors, supported by dual narratives of global AI supply chains and domestic substitution. Core areas like optical modules and fiber optics continue to show strong earnings growth. **2) "National Team" Support:** State-backed institutions and large corporations have made significant market purchases and announced buybacks, providing liquidity and signaling confidence. This is seen as a stabilizing policy signal, often associated with market bottoms. **3) Broader Market Pillars:** Other major sectors are showing endogenous recovery momentum. Consumer stocks benefit from stabilizing CPI and signs of sector recovery (e.g., liquor price hikes). Cyclical sectors like aluminum have high earnings, potential price increases due to tight supply, and low valuations. The financial sector offers stable dividends and low valuations. The conclusion is that the sell-off was driven by external contagion, not a collapse in fundamentals. With strong policy support and recovering momentum across key sectors, the A-share market possesses the toughness to regain stability.

marsbit34 хв тому

Misjudged A-Shares: Resilience, Expectations, and Confidence

marsbit34 хв тому

Quantum Computers Haven't Arrived Yet, but Satoshi's 1.1 Million Bitcoin Pose the First Problem

A zero-knowledge proof tool can help modern Bitcoin wallets migrate assets before quantum attacks in milliseconds. However, approximately 1.1 million bitcoins mined by Satoshi Nakamoto before 2012 are fundamentally unprotected by such solutions, as they reside in older P2PK addresses lacking the hierarchical structure required for this cryptographic rescue. This exposes a critical divide: post-2012 HD wallets can potentially "upgrade" signatures using tools like Project Eleven's, while early coins are cryptographically isolated. The community faces a political, not technical, dilemma with four contentious options: 1) Let quantum attackers seize the coins, risking market instability; 2) Hard fork to freeze vulnerable addresses, seen as violating property rights; 3) Implement extreme spending limits to slow any attack; 4) Redistribute "orphaned" coins, breaking immutability. Each solution threatens a core Bitcoin tenet. The market is already pricing in this governance risk, as evidenced by institutional divestment citing uncertainty. The true crisis isn't the arrival of quantum computing, but the community's inability to reconcile its foundational principles with an existential technological shift.

marsbit42 хв тому

Quantum Computers Haven't Arrived Yet, but Satoshi's 1.1 Million Bitcoin Pose the First Problem

marsbit42 хв тому

Where Will the Next Bull Market's Main Battlefield Be? The Answer Lies in These Two Types of Assets

Matt Hougan, Bitwise's CIO, identifies the fusion of traditional finance and on-chain finance as the core driver for the next crypto bull market. He expects this cycle, propelled by real-world utility and global finance adoption, to be the largest yet, centered on stablecoins, asset tokenization, 24/7 trading, instant settlement, and institutional DeFi growth. The article outlines two primary investment approaches tied to this trend. The first focuses on native crypto applications with strong revenues and sustainable tokenomics, exemplified by Hyperliquid (HYPE). Its Layer-1 chain is gaining significant trading volume from traditional assets like oil and equities. Its model of using 99% of revenues for token buybacks is a key strength. The second approach targets established traditional firms building at scale on crypto rails, like Robinhood. The launch of its Robinhood Chain, enabling global trading of tokenized stocks and DeFi activities, represents a major move towards this fusion. The author also notes other serious contenders like Coinbase, Figure, BlackRock, and JPMorgan. Ultimately, the thesis is that the most profound success will come when blockchain technology seamlessly integrates into finance, becoming invisible to end-users. Investors are advised to position ahead of this convergence.

Foresight News46 хв тому

Where Will the Next Bull Market's Main Battlefield Be? The Answer Lies in These Two Types of Assets

Foresight News46 хв тому

The Clarity Act's Journey Through Congress: The Thorny Path of Bipartisan Compromise in the U.S.

The U.S. Congress is struggling to advance the crypto market structure bill known as the Clarity Act, with bipartisan compromise proving difficult. Key hurdles include unresolved disputes over "yield" products and, more critically, the inclusion of strong ethics provisions for elected officials—a non-negotiable demand for many Democrats. While a compromise on yield was reached in May, securing only limited Democratic support in committee, the separate Senate Agriculture Committee version later passed with no Democratic votes due to the ethics impasse. As Republicans push for a full Senate vote in July, demands for ethics rules have expanded, and other contentious issues like developer protections and concerns from law enforcement and large banks further complicate negotiations. Despite consensus on the need for legislation, the path forward is unclear. Recent discussions between senators and White House officials aim to find acceptable ethics language. Some lawmakers question whether a compromise text can garner enough bipartisan support, with one Democrat stating the current proposal lacks the strong ethics provisions required for their vote. Potential short-term goals for the crypto community include symbolic Senate action before the August recess, a longer-term aim for passage by 2026, or establishing a detailed framework that addresses ethics and other compromises. The process remains arduous, relying on the traditional, vote-by-vote effort to build bipartisan support.

marsbit53 хв тому

The Clarity Act's Journey Through Congress: The Thorny Path of Bipartisan Compromise in the U.S.

marsbit53 хв тому

Торгівля

Спот