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.
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