Cryptocurrency investors are reacting with both hope and fear as the markets are increasingly reacting to US President Donald Trump’s threats and hopes on geopolitical issues. Ethereum fell about 6.5% to below $3,000, while Solana dropped more than 4% yesterday and almost 12% last week, as crypto traders exercise caution amid Trump’s arbitrary announcements that could affect their investments.
On the other hand, Bitcoin rebounded to about $90,000 as the crypto stabilised amid a modest rebound in the US equity futures markets.
Overall, the crypto market has been deeply affected by President Trump’s renewed tariff threats towards European countries as he looks to annexe the sparsely populated, but strategically crucial, Greenland island.
Besides that, gold and silver continue to hit record highs as investors are moving toward defensive commodities rather than volatile cryptocurrencies.
The past week has seen a flurry of announcements by Donald Trump, many of which are aimed at controlling or acquiring Greenland, with threats of sanctions to those European countries that oppose the idea.
These threats have spooked investors, which has directly impacted riskier assets like Bitcoins, while many move towards safer debt bonds or commodities.
According to data released by CoinGlass, almost $1.09 billion in crypto positions have been liquidated in the past 24 hours, with nearly all being linked to long term investors.
Trump is expected to make a speech at the World Economic Forum (WEF) at Davos shortly, with his remarks likely to affect the markets.
Disclaimer: Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. The website or its publishers will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
