Trump's one sentence triggers a financial market frenzy: gold plunges by $80, while cryptocurrencies get liquidated for $800 million

Trump’s post about Greenland has triggered a major market divergence. Safe-haven assets like gold and silver plummeted in the short term, while U.S. stocks surged rapidly. Meanwhile, the cryptocurrency market suffered a heavy blow, with 24-hour liquidation amounts reaching $864 million. This reflects a sharp shift in investor risk appetite and a reassessment of geopolitical risks.

Numerical Snapshot of Market Reactions

According to the latest news, Trump’s post has caused a chain reaction in the markets. The specific performance is as follows:

This data comparison is quite interesting. Usually, gold is considered a safe-haven asset and should rise during risk events. But this time, it sharply declined, indicating a change in market logic.

The True Background of the Greenland Incident

Trump stated that his preliminary talks with NATO Secretary General Jens Stoltenberg laid the groundwork for future agreements on Greenland and the Arctic region. This is not just a casual political statement but a real geopolitical move.

According to related information, Trump threatened to impose a 10% tariff on eight European countries unless Denmark agreed to a deal on Greenland. This threat triggered a strong EU backlash, with Germany explicitly responding that it was “unacceptable,” and the EU even considering freezing large-scale U.S. liquefied natural gas procurement agreements as retaliation.

In other words, this is not just about Greenland but a further escalation of U.S.-EU trade conflicts.

Why Did Gold Instead Fall?

This is the most counterintuitive part. Normally, rising geopolitical risks should push gold prices higher. But gold plummeted this time, and there are several reasons behind it:

Shift in Risk Sentiment

Trump’s tough stance and progress in NATO negotiations may have been interpreted by the market as a “problem likely to be resolved” signal. This reduced concerns about conflict escalation, thereby lowering demand for safe-haven assets. Meanwhile, the rise in U.S. stocks indicates positive investor expectations for U.S. policies, further suppressing gold.

Divergence Logic Between Precious Metals and Cryptocurrencies

Analysis suggests that geopolitical tensions weaken Bitcoin’s “global” appeal. When risk appetite declines, investors start selling cryptocurrencies and shift to safer assets like U.S. stocks. This explains why stocks rose while Bitcoin fell.

Reassessment of Inflation Expectations

According to Forbes, traders are paying close attention to upcoming inflation data. Economists at Barclays and Morgan Stanley expect U.S. December PCE inflation to rise to 2.8%-2.9%. If inflation data exceeds expectations, it could trigger concerns about “stagflation,” pushing stocks higher and precious metals lower.

The Real Dilemma in the Cryptocurrency Market

A 24-hour liquidation of $864 million is no small figure. Reports indicate that Trump’s tariff threats directly caused Bitcoin to fall below $93,000. This reflects a more sensitive market response to risk in the crypto space.

The CEO of a U.S. bank recently issued a risk warning about the cryptocurrency market, further fueling panic. Altcoins like XRP face large-scale liquidation pressures, and Dusk, which nearly multiplied sixfold, now faces a correction risk. All these point to the fragility of the crypto market.

Key Events to Watch Next

Based on current information, several factors may continue to influence the market:

• December PCE inflation data release (expected to surpass forecasts)
• Progress in U.S.-EU trade negotiations
• Further actions by Trump at Davos (he plans multiple events this week)
• When the EU’s retaliatory tariffs will be implemented

These could trigger a new wave of market volatility.

Summary

A single post by Trump has caused intense market divergence: traditional safe-haven assets like gold and silver have reversed and fallen sharply, U.S. stocks have risen, and the crypto market has been heavily impacted. This is not just an overreaction but a comprehensive reassessment by investors of risk sentiment, geopolitical outlook, and inflation expectations. The decline in gold indicates that the market believes risks are being digested, the rise in U.S. stocks reflects optimism about U.S. policies, and the crash in cryptocurrencies exposes their vulnerability in risk environments. Moving forward, attention should be paid to inflation data and U.S.-EU trade negotiations, as these factors may determine the next market direction.