US stocks and cryptocurrency markets experienced an upward trend on Wednesday after President Donald Trump announced his decision to halt previously proposed tariffs on several European countries.
The S&P 500 saw an increase of 1.16%, climbing hours after Trump shared on Truth Social that he had a ‘very productive meeting’ with NATO Secretary General Mark Rutte. The announcement halted tariffs initially scheduled for February 1, which aimed at eight European nations, including Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands, and Finland.
Trump commented, “We have formed the framework of a future deal regarding Greenland and the entire Arctic Region. This agreement, if finalized, will benefit the United States and all NATO nations.”
(Translation: We have formed the framework of a future deal regarding Greenland and the entire Arctic Region. This agreement, if finalized, will benefit the United States and all NATO nations.)
Mixed Reactions in Cryptocurrencies
Following Trump’s announcement, crypto-related stocks reacted variably. For example, Michael Saylor’s MicroStrategy (MSTR) rose by 2.23%, whereas Coinbase’s shares (COIN) fell by 0.35%. Trading in crypto mining stocks showed similar inconsistency, with Riot Platforms’ stocks declining by 4.70% while Mara Holdings increased by 1.83%.
In the major cryptocurrency markets, Bitcoin’s value increased by 1.64%, now priced at $90,010. Meanwhile, Ether and Solana saw rises of 3.03% and 2.36%, according to CoinMarketCap.
Market Sentiment Turns Cautious
Despite these modest gains in cryptocurrency values, the market sentiment has soured. The Crypto Fear & Greed Index dropped to an extreme fear score of 20, down four points from Wednesday.
Some market analysts argue that the potential impact of Trump’s tariffs on cryptocurrency markets may be overstated. In October, the sentiment platform Santiment noted how retail traders often blame Trump’s tariffs for market declines, relying on external factors during downturns.
