The crypto market then moved higher US President Donald Trump said the United States would pause the imposition of new tariffs after what he described as a “productive meeting” with NATO’s secretary general Mark Rutte.
In a statement on Truth Social, Trump said the US had formed the framework of a future agreement covering Greenland and the broader Arctic. He added that the tariffs that were due to come into effect on February 1 would no longer continue.
The announcement appeared to allay immediate geopolitical concerns that had weighed on risky assets in recent sessions.
Source: Truth Social
Crypto markets responded quickly, with broad gains for Bitcoin and major altcoins.
Bitcoin remains stable as risk sentiment improves
Bitcoin was one of the direct beneficiaries of the change in tone. Assets recovered from earlier weakness as traders reacted to the reduced likelihood of a near-term trade escalation between the US and its European allies.
At the time of writing, Bitcoin’s market capitalization was approx $1.79 trillionand remains firmly above other digital assets.
The price move reflected a broader ‘risk-on’ reaction rather than a Bitcoin-specific catalyst, with macro news once again shaping the market’s short-term direction.
Source: Coinglass
While Bitcoin had struggled in recent days due to uncertainty surrounding rates and transatlantic relations, Trump’s comments helped stabilize sentiment and reduce downward pressure.
Altcoins perform better when capital rotates
Altcoins posted stronger percentage gains than Bitcoin, signaling renewed interest in higher-beta assets.
Ethereum, the second-largest cryptocurrency, rose alongside the broader market, swinging its market cap $361 billion.
Layer-1 tokens like Solana and XRP also moved higher. At the same time, several mid-cap assets posted outsized gains as traders returned to risk-sensitive segments of the market.
The improvement was visible in sector-based performance, including smart contract platforms, DeFi-related tokens and select meme assets.
Market heat map The data showed widespread green in most categories, indicating the rally was not limited to a single story or ecosystem.
Macro news remains the dominant driver
Trump’s statement followed days of heightened concern over EU-US trade relations. Today, European officials signaled a pause in progress on the Turnberry trade framework amid disputes over Greenland and tariff threats.
By confirming that tariffs would not be imposed as planned, the announcement reduced immediate macro uncertainty. This factor has increasingly influenced the price action of cryptocurrencies in addition to traditional markets.
The response underlines how closely digital assets remain linked to global risk sentiment, with geopolitical and trade developments continuing to act as key short-term catalysts.
Final thoughts
- Trump’s decision to pause tariffs helped improve market sentiment, leading to a broad crypto rally led by altcoins.
- This move highlights crypto’s continued sensitivity to macro and geopolitical developments, especially around global trade tensions.