Daily Market Update: Trump’s Greenland Tariff Threat Sends Stock Futures and Crypto Lower

TLDR

• Bitcoin held near $92,000 on Tuesday after Monday’s sell-off as traders remained cautious about renewed trade tensions
• US stock futures dropped over 1% with Dow futures down 550 points following Trump’s tariff threats against eight European nations over Greenland
• Trump announced 10% tariffs on EU imports starting February 1, rising to 25% by June 1 unless Greenland purchase negotiations begin
• Europe is preparing retaliatory measures worth up to $108 billion in response to the tariff threats
• Asian markets fell with Japan’s Nikkei down 0.8% while the 10-year Treasury yield reached its highest level in over four months at 4.265%

Stock and crypto markets faced pressure on Tuesday as President Trump escalated trade tensions with European allies. The announcement came over the weekend and sent futures tumbling in early trading.

Bitcoin traded near $92,000 after falling on Monday. The price showed relative stability compared to the broader market reaction. Ether dropped 0.8% to $3,183 while the total crypto market cap fell 0.3% to $3.21 trillion.

US stock futures pointed to a rough start for Wall Street. Dow Jones Industrial Average futures fell 1.1%, indicating a drop of around 550 points at the open. S&P 500 futures slipped 1.2% and Nasdaq 100 futures sank 1.4%.

The selling followed Trump’s announcement that the US will impose tariffs on imports from eight NATO countries. The list includes Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain. Trump said tariffs would start at 10% on February 1 and climb to 25% by June 1 unless negotiations begin over purchasing Greenland.

European officials called the threat unacceptable. The EU began preparing countermeasures including reactivating a suspended tariff package worth about €93 billion. Europe is also considering its Anti-Coercion Instrument, a tool designed for high-pressure trade disputes.

Global Markets React to Tariff News

Asian markets dropped as the risk-off move spread across the region. Japan’s Nikkei fell 0.8% while MSCI’s broad Asia-Pacific gauge declined 0.44%. European futures pointed to a lower open as traders processed the tariff timeline.

The dollar stayed under pressure while US Treasury yields climbed. The 10-year yield rose to around 4.265%, its highest level in more than four months. Gold held near record levels and the Swiss franc drew fresh safe-haven demand.

Wall Street had closed the previous week with losses. The S&P 500 fell 0.4%, the Dow dropped 0.3%, and the Nasdaq Composite slid 0.7%.

Bitfinex analysts said Bitcoin showed early signs of structural improvement in 2025. The cryptocurrency briefly pushed through the $94,000 to $95,000 resistance zone, which flushed out short positions in the biggest clear-out in nearly 100 days.

Crypto Market Shows Resilience

Aggressive spot buying helped Bitcoin rebound from recent lows. Long-term holder distribution slowed, with realized profits dropping to about 12,800 BTC per week. This figure sits well below earlier cycle peaks.

Analysts noted that for a more durable rally to take hold, market structure needs to shift. They said maturation supply would need to outweigh long-term holder spending. Such a shift would drive long-term holder supply higher and reduce sell-side pressure.

Trump is scheduled to speak at the World Economic Forum in Davos, Switzerland on Wednesday. The event keeps trade and policy risk front and center for markets that started the week in defensive mode.

The Supreme Court may rule this week on whether Trump’s use of the International Emergency Economic Powers Act to impose tariffs is constitutional. Treasury Secretary Scott Bessent said Sunday he believes it is very unlikely the court would overturn the policy.

Investors are also watching a busy earnings slate this week. Results are due from Netflix, Intel, and Johnson & Johnson among others. Corporate guidance will be closely scrutinized as analysts expect the S&P 500 to deliver earnings growth of roughly 12% to 15% this year.

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