Trump suspends tariffs to promote agreements, Bitcoin rises in response: How does geopolitics influence the crypto market?

Trump announces that he has reached a framework agreement with NATO Secretary General Mark Rutte on the future of Greenland and the Arctic region, and as a result, has temporarily postponed the tariffs originally scheduled for February 1st on eight European countries. Following the announcement, market risk sentiment significantly improved, the VIX index retreated from high levels, funds flowed out of traditional safe-haven assets like gold, and shifted back into equities and risk assets such as cryptocurrencies.

As of January 22, 2026, Bitcoin’s price has reached $90,139.6, up 1.12% in 24 hours, demonstrating a positive response from the crypto market under a geopolitically easing environment.

Key Event

U.S. President Trump announced via social media on January 21, 2026, that he had met with NATO Secretary General Mark Rutte in Davos and formed a “framework for the future agreement” regarding Greenland and the entire Arctic region. Based on this development, the tariffs scheduled for February 1st on eight European countries will be suspended. Trump stated that if this solution is ultimately implemented, it will be “greatly beneficial for the United States and all NATO countries.”

It is noteworthy that the NATO talks did not directly involve the sovereignty of Greenland. NATO Secretary General Rutte said in an interview that the focus of the meeting was on the security issues of “the entire Arctic region.” Nevertheless, the Trump administration has “de-NATO-ized” the Greenland issue and used economic means to pressure allies, which has marginalized NATO’s collective bargaining mechanism.

Market Reaction

This geopolitical progress quickly transmitted to financial markets. Trump’s decision to cancel tariffs on Europe directly reassured the market, alleviating concerns over escalating trade frictions.

Global risk assets almost simultaneously rose. The Dow Jones Industrial Average increased by 1.21%, the S&P 500 rose by 1.16%, and the Nasdaq Composite gained 1.18%, with tech stocks leading the rebound. The European STOXX600 index followed the rally, and the Nasdaq China Golden Dragon Index also rose by 2.21%, with Chinese concept stocks like Baidu and Bilibili increasing by over 5%.

Traditional safe-haven assets like gold experienced a correction, and the VIX index declined from high levels, indicating a significant rebound in market risk appetite.

Cryptocurrency Market Correlation

Against the backdrop of improved global risk sentiment, the cryptocurrency market also showed positive reactions. Below are the latest data for major cryptocurrencies obtained through Gate行情:

From the data, it is evident that as geopolitical tensions ease, both Bitcoin and Ethereum are trending upward, consistent with the performance of traditional risk assets.

In particular, Bitcoin’s status as digital gold may temporarily lose some safe-haven demand when geopolitical uncertainties decrease, but under the expectation of improved global liquidity, it still shows a positive trend.

Geopolitics and Digital Assets

There is a complex and subtle relationship between geopolitical events and the cryptocurrency market. The achievement of the Greenland agreement framework and the tariff suspension demonstrate how traditional political decisions can quickly influence the digital asset space. Analysts point out that Trump’s policy volatility and the “TACO trade” pattern(Trump always backs down) have become market considerations. This policy uncertainty itself creates volatility opportunities in the crypto market.

Regarding the content of the agreement, the key points of negotiation include Greenland’s rare earth resources and the “Golden Dome”(Golden Dome) missile defense system. Greenland’s rare earth reserves rank eighth globally, and rare earths are critical materials for manufacturing magnets, widely used in weapon systems, electric vehicles, and electronics. Control over these strategic resources could impact global supply chains and, consequently, influence crypto projects closely related to clean energy and technological innovation.

Arctic Strategic Landscape

The strategic value of the Arctic region is rapidly rising, becoming a focal point of competition among major powers. NATO Secretary General Rutte has explicitly stated that the Arctic, including Greenland, is vital to the alliance’s collective security.

Meanwhile, EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, emphasized that Arctic security is a transatlantic common interest, but “sovereignty is not for trading or bargaining.” Greenland, although part of the Kingdom of Denmark, has a high degree of autonomy. Any future arrangements for the island will require approval from both Denmark and Greenland, a process that faces considerable difficulty.

Market analysis suggests that the most likely outcome is an arrangement reached through negotiations that allows the U.S. to expand its security and economic presence in Greenland without altering sovereignty.

Long-term Market Outlook

Although the current market reacts positively to the tariff suspension, the long-term trend still depends on whether the agreement is truly implemented. German Finance Minister Christian Lindner has warned that “the agreement is not yet finalized,” and if subsequent negotiations break down, markets could be impacted again.

For crypto investors, paying attention to the linkage between geopolitics and macroeconomic policies becomes increasingly important. The unpredictability of the Trump administration’s policies has created a unique market environment, with both risks and opportunities.

The EU has made it clear that Europe “has a full set of tools to protect its interests,” indicating that even if the U.S. temporarily cancels tariffs, the transatlantic game will continue. In the Arctic, balancing security interests, resource development, and environmental protection will be a long-term challenge, and these factors could indirectly influence the crypto market through energy prices and inflation expectations.

The Arctic ice sheet is melting, and global attention to this region is intensifying. With the Greenland framework proposed, the U.S. has taken a step forward in securing rare earth resources and deploying the “Golden Dome” missile defense system in the Arctic. As of today, the total global cryptocurrency market cap exceeds $3.18 trillion, with Bitcoin maintaining over 56% market share and continuing to lead the digital asset space. Amid changing geopolitical winds, Bitcoin’s price has still increased by +1.12% in 24 hours, demonstrating its resilience as a new asset class. The framework has been established, but negotiations on specific terms will be led by U.S. Vice President Harris, Secretary of State Blinken, and Special Envoy Wekov, who report directly to Trump. As the traditional geopolitical chessboard is reshuffled within the Arctic circle, the decentralized crypto world is recording these changes at its own pace.