President Trump’s remarks during a recent meeting in Davos caused significant fluctuations in both crypto and stock markets, leading to over $1 billion in liquidations within the cryptocurrency sector. Bitcoin experienced a notable rebound, climbing above $90,000 after briefly dipping to nearly $87,000. This recovery followed Trump’s announcement regarding new tariffs against European nations, which he stated would no longer be imposed after his discussions with NATO Secretary General Jens Stoltenberg.
In a post shared on his Truth Social platform, Trump discussed a productive meeting that laid the groundwork for potential deals related to Greenland and the Arctic region. He expressed optimism that this agreement would benefit both the United States and NATO member countries, and highlighted his decision to halt the tariffs initially scheduled to take effect on February 1.
The markets reacted positively to Trump’s statements, reversing losses seen the day prior. The S&P 500, Nasdaq, and Dow all recorded increases of approximately 1.5%, suggesting a resurgence in investor sentiment. In the cryptocurrency market, other major assets followed suit; Ethereum rose above $3,000, while XRP gained over 3% to reach $1.96.
However, the day’s volatility brought significant challenges for investors in the crypto space. More than $1 billion in positions were liquidated as traders reacted to the sharp price movements. Long positions, which anticipate rising asset prices, faced the most damage, with approximately $672 million worth of liquidations, while short positions accounted for around $335 million. Bitcoin was at the forefront of these losses, with around $426 million liquidated, followed closely by Ethereum at $366 million.
In a separate development on a prediction market operated by Dastan, traders have shifted their views, now estimating a 56% likelihood that Trump will formally propose acquiring Greenland before July. This marks a nearly 14% increase in odds within just one day, reflecting the market’s dynamic response to political developments.
