Bitcoin price rises as Trump backtracks on Greenland tariff threat
Bitcoin (BTC-USD) traded higher on Thursday as global risk sentiment rose after US President Donald Trump backed off a plan to impose new tariffs on its European allies amid a move to buy Greenland.
The largest cryptocurrency by market cap (BTC-USD) has moved alongside stocks in Asia and Europe, rising nearly 1% over the past 24 hours to approach $90,000 (£66,902). The broader cryptocurrency market cap rose 2.7% to $3.18 trillion over the same period, according to CoinGecko. data.
Read more: Crypto live prices
President Donald Trump signaled a diplomatic shift at the World Economic Forum in Davos on Wednesday, saying he would not take military action to seize Greenland and that he had reached “the framework for a future agreement” on Danish territory with NATO allies.
These words brought new volatility to the crypto markets. Bitcoin (BTC-USD) fell to an intraday low near $87,300 before rebounding towards $90,000 as traders reassessed US trade policy risks and broader macro conditions. More than $625 million in leveraged crypto positions were liquidated within 24 hours, split roughly evenly between long and short positions among nearly 150,000 investors, according to Coinglass marketplace. data.
Analysts said this episode highlights how digital assets respond more directly to geopolitical and macro headlines.
“Today’s sharp price swings show how closely crypto markets are tracking geopolitical and policy developments,” SynFutures CEO Rachel Lin said, noting that Trump’s signals on the Greenland negotiations and the pause on potential EU tariffs “briefly improved global risk sentiment and led to a rapid recovery in Bitcoin as well as US stocks.”
Read more: Will the Bitcoin price drop to $50,000 or rise to $125,000 in 2026?
Speaking to Yahoo Finance UK, Lin added that although the move was headline-driven, it “reflects a deeper shift in market structure,” describing bitcoin (BTC-USD) as “behaving more and more like a macro asset, responding to changes in policy expectations and broader risk appetite.”
Over the long term, he said institutional participation supports the evolution of Bitcoin (BTC-USD) as a “mature and globally meaningful asset class, even amid high volatility.”
Global stocks rose as Trump withdrew his threat to impose additional 10% tariffs on eight European countries, including Britain, after receiving what he called a “framework for a future agreement” in NATO discussions on Greenland.
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In Asia, Japan’s Nikkei index gained approximately 2% in value, while South Korea’s Kospi index rose above 5,000 for the first time. European markets opened higher and the FTSE 100 gained 0.7%.
