US financial markets showed modest recovery on Wednesday after President Donald Trump stepped back from a proposed round of tariffs connected to negotiations over Greenland. The announcement helped ease investor anxiety, lifting equities and supporting a mild rebound across major cryptocurrencies.
The S&P 500 finished the session up 1.16%, following Trump’s statement that tariffs scheduled for Feb. 1 would not move forward. The proposed measures had targeted eight European countries, including Denmark, Germany, France, and the United Kingdom. Trump described discussions with NATO leadership as “very productive,” signaling progress toward a broader framework covering Greenland and the Arctic region. The shift reduced near-term trade uncertainty, offering relief to risk assets.
Reaction among crypto-related equities was uneven. Shares of Strategy rose 2.23%, while Coinbase slipped 0.35%. Crypto mining stocks also diverged, with Riot Platforms falling 4.70% and Mara Holdings gaining 1.83%. The mixed performance suggested cautious optimism rather than broad risk-on positioning.
In digital asset markets, prices edged higher following the tariff news. Bitcoin climbed around 1.6% to trade near $90,000, while Ether rose just over 3%. Solana also advanced more than 2%, reflecting modest but broad-based gains across large-cap tokens.
Despite higher prices, sentiment indicators weakened. The Crypto Fear & Greed Index dropped to an “extreme fear” reading of 20, highlighting persistent caution among traders. Analysts note that while tariff headlines often spark volatility, their longer-term impact on crypto markets may be overstated, especially during periods of heightened uncertainty.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.