US Stocks, Crypto Inches Higher After Trump Backs Off Tariffs.
U.S. stocks and the crypto market showed signs of life on Wednesday as U.S. President Donald Trump countered tariffs imposed over his efforts to claim Greenland.
The S&P 500 closed up 1.16 percent on Wednesday, hours after Trump said on Truth Social that he had a “very productive meeting” with NATO Secretary General Mark Rutte and would not move forward with the tariffs planned for Feb. 1.
The tariffs targeted eight European countries, including Denmark, Norway, Sweden, England, France, Germany, the Netherlands and Finland.
“We have prepared a framework for the future agreement regarding Greenland and the entire Arctic region. If this solution is completed, it will be great for the United States of America and all NATO countries,” said Trump.
Crypto stocks are mixed, major coins are on the rise
Crypto-linked stocks had mixed reactions after the announcement, with Michael Saylor Strategy ( MSTR ) closing the trading day up 2.23%, while crypto exchange Coinbase ( COIN ) shares fell 0.35%, according to Google Finance.
Crypto mining stocks were similarly mixed, with Riot Platforms up 4.70% and Mara Holdings (MARA) up 1.83%.
Spot prices of major crypto assets by market capitalization all rose slightly after Trump's announcement.
According to CoinMarketCap, Bitcoin (BTC) rose 1.64% to $90,010, while Ether and Solana (SOL) rose 3.03% and 2.36%.
Crypto sentiment turns to fear despite high prices
While the crypto market has grown somewhat, the overall sentiment in the market has become more dire.
Related: US crypto czar Sachs says banks, crypto will merge into ‘one digital asset industry'
The Crypto Fear and Greed Index fell to 20 “extreme fear” points in Thursday's update, down 4 points from Wednesday.
Some analysts have argued that Trump's tariffs are often overstated given their impact on crypto.
In October, crypto sentiment platform Santiment said crypto retailers were quick to blame Trump's 100% tariffs for the broader market decline, as they often look for something to point the finger at during a downturn.
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