January 21st, the crypto world experienced a dramatic reversal. Trump suddenly announced the cancellation of the planned 10% tariffs on 8 European countries scheduled for February 1st. The moment the news broke, the market reacted extremely quickly—Bitcoin surged straight up, briefly breaking $90,300, rebounding over 3% from the intraday low; Ethereum's rally was even more vigorous, bouncing from a low of $2,870 to $3,060, an increase of nearly 7%. The entire crypto market staged a classic V-shaped reversal.



Behind this rally lies a clear political signal. After meeting with NATO Secretary General at the Davos Forum, Trump proposed the so-called "Greenland Agreement Framework." According to official statements, this involves an agreement on defense system deployment and mineral development rights. US-EU trade tensions have thus temporarily eased.

Comparing this to the scene a week ago highlights how sensitive the market is. At that time, Trump had just issued strong words about tariffs, and the crypto market was in a state of panic. Funds were fleeing wildly in search of safe havens, with Bitcoin dropping below $87,000 and Ethereum hitting a nearly one-month low. In just a few days, the extreme market sentiment completely reversed.

Why does macro policy have such a direct impact on crypto assets? The core reason is that cryptocurrencies like Bitcoin and Ethereum are inherently high-risk assets. When geopolitical tensions worsen or global trade wars escalate, economic uncertainty spikes. In such an environment, investors tend to sell high-volatility assets first to cut losses, shifting funds into traditional safe havens like gold and the US dollar. Once risks subside and risk appetite recovers, capital flows back into the crypto market, driving prices up. This logic has been particularly evident recently.

However, experienced traders know that such policy reversals are often unpredictable. The so-called "agreement framework" has not even been formalized into an official document, and Denmark has explicitly stated it will not discuss Greenland sovereignty issues. If subsequent negotiations encounter setbacks, tariff threats could resurface at any time. How long this crypto rebound can last largely depends on the actual progress of US-EU trade negotiations. In the short term, market risk appetite is indeed recovering, but the long-term policy direction still requires close observation.
BTC2.16%
ETH2.27%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
tokenomics_truthervip
· 5h ago
Greenland Agreement Framework? Sounds impressive, but actually nothing has been confirmed yet. How long this rebound can last is really hard to say. --- Once again, a single word from Trump changes everything. The guys are still chasing highs. I feel exhausted just watching you. --- Basically, it's political game-playing. We've been used as pawns. Capital flows in and out, how strong must the retail investor mentality be? --- A week ago, it was all despair, and now everyone is rushing in. The emotional turnaround is really unbelievable. --- Denmark has clearly stated they won't discuss Greenland anymore. The chance of a backlash later is huge, so better not get too excited. --- High-risk assets are like this. When policies change, everything gets chaotic. In the long run, I remain somewhat pessimistic. --- V-shaped rebound is meaningless. The key is how US and EU negotiations progress; otherwise, it’s just a flash in the pan. --- Starting hype without even an official document, this mentality is truly unmatched. --- Short-term risk appetite has indeed rebounded, but don’t be fooled by the rebound. The pitfalls are still ahead.
View OriginalReply0
FalseProfitProphetvip
· 5h ago
Ha, another Trump show, the crypto circle still dances along, really no other script. The Greenland framework hasn't even appeared yet, and Denmark has already started to turn away. How far this rebound can go is still uncertain. We've seen the V-shaped reversal so many times this year, it's exhausting. Short-term gains are satisfying, but if you want to hold long-term, you need to watch the negotiations closely. That's the real deal. This is the fate of high-risk assets. A single policy statement can cause a 7% rise or fall in prices. If your heart isn't strong enough, you really can't play this game.
View OriginalReply0
HashBardvip
· 5h ago
honestly the greenland playbook feels like political theater masquerading as policy... watch how fast this "framework" crumbles when denmark remembers it has a spine lol. market dancing to the same tune it danced to last week, just in reverse. sentiment whiplash central. can we talk about how btc just became a geopolitical thermometer though? that's the real narrative arc here...
Reply0
NervousFingersvip
· 5h ago
Haha, every time Trump says something, the coin market turns upside down. I'm already tired of this routine. Speaking of which, the framework doesn't even have an official document, yet they dare to be so hyped... Denmark has already said they won't discuss Greenland, so it feels like this rebound could be suppressed at any time. The $90,000 threshold feels like it's about to be tested again, probably betting that negotiations won't go awry. These days, the rise has been a bit rapid, so watch out for a dump. I'll just see how the policy develops next; short-term risk appetite has indeed returned, but don't be fooled by this V-shaped reversal. Honestly, politics is politics, and the price of the coin just follows risk sentiment. Unless Trump really shuts up, this rally is just superficial.
View OriginalReply0
ZenZKPlayervip
· 5h ago
Good grief, once again a single sentence from Trump turns the world upside down, and the crypto market is like a roller coaster... How long can this rebound last? I think it's just a rebound, not a reversal. Greenland Agreement Framework? There's not even an official document yet, it feels like just another pie in the sky. Honestly, this circle is too easily influenced by policies; when risk appetite changes, prices just kneel. Let's wait and see the subsequent negotiations, or it might just fall back again.
View OriginalReply0
MetaverseLandlordvip
· 5h ago
Trump's one statement caused the coin to rise by 7%. The level of manipulation this time is really incredible... It feels like playing the market game.
View OriginalReply0
AirdropHunter007vip
· 5h ago
Haha, another good show. Trump's latest move has the crypto community all over the place. V-shaped reversal, making a fortune, but I'm just worried he'll change his tune again tomorrow. Policy shifts cause the market to dance wildly; this is our fate. Greenland Agreement? I think it's just hype, there's more to come. Short-term gains are satisfying, but in the long run, it depends on how the US and Europe negotiations go. Be careful not to be careless.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)