As the world’s economies navigate turbulent waters, President Trump has once again turned up the heat on trade relations, igniting fresh concerns among investors. On Tuesday, stock and crypto markets sidestepped to a cautious tone in response to Trump’s recent threats to impose tariffs on imports from several European nations over a proposed purchase of Greenland.
Following a sell-off on Monday, Bitcoin found some steadiness, maintaining a trading price close to $92,000, while competing cryptocurrencies faced downward pressure. Ether shaved off 0.8% to settle at $3,183, and the total capitalization of the cryptocurrency sector slid 0.3% to $3.21 trillion.
U.S. stock futures indicated a challenging start for Wall Street, with Dow Jones Industrial Average futures dropping more than 1% or approximately 550 points in the early hours of trading. The S&P 500 futures slipped by 1.2%, while Nasdaq 100 faced a steeper decline of 1.4%.
These market movements follow the announcement of imminent tariffs against eight NATO countries—including Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. President Trump revealed that tariffs would start at 10% on February 1 and escalate to 25% by June 1 unless negotiations for the acquisition of Greenland proceed effectively.
European officials have condemned the tariff threats as unacceptable, responding with preparations for retaliatory measures that could amount to as much as €93 billion, alongside the activation of the European Union’s Anti-Coercion Instrument—a tool designed to navigate high-stakes trade disputes. As tensions escalated, the risk-off sentiment spread across global markets. The Nikkei in Japan dropped by 0.8%, while the broader Asia-Pacific gauge fell by 0.44%, as traders braced for the implications of Trump’s actions.
Despite the broader market’s declines, Bitcoin’s recent performances have led some analysts to remain cautiously optimistic. According to an analysis from Bitfinex, Bitcoin displayed early structural improvement signs in 2025, having briefly navigated through the $94,000 to $95,000 resistance zone in recent days. This upward movement managed to flush out short positions, marking the most significant clearing in nearly 100 days.
Although Bitcoin’s resilience appears notable amidst unfavorable market conditions, experts urge caution. Recent spot buying has bolstered Bitcoin’s demand, and long-term holders have slowed distribution, realizing approximately 12,800 BTC per week—well below prior cycle peaks. A genuine and sustainable rally would require structural shifts in the market, favoring long-term holder supply over selling pressure.
On Wednesday, Trump is set to deliver remarks at the World Economic Forum in Davos, Switzerland, an event that promises to keep trade and policy risks at the forefront. eyes are also fixed on the Supreme Court’s potential ruling regarding Trump’s use of the International Emergency Economic Powers Act to impose tariffs, as Treasury Secretary Scott Bessent expressed skepticism about the court overturning the policy.
As U.S. investors remain entrenched in corporate earnings reports this week from major players like Netflix, Intel, and Johnson & Johnson, analysts anticipate a 12% to 15% earnings growth for the S&P 500 in the year ahead. The perception of these forthcoming earnings, alongside ongoing trade negotiations, is expected to dictate market movements in the days to come.
