Trump’s Greenland Threats Backfire-Crypto Rises!

by

Crypto markets found their mojo after President Trump appeared to hit pause on his tariff threats against eight European nations-this time over Greenland-sending top digital assets modestly into the green. Because nothing says “I’m a serious leader” like threatening tariffs on countries you’ve never heard of, only to back down when someone mentions “climate change.”

The episode has revived traders’ favorite acronym, TACO (“Trump Always Chickens Out”), shorthand for the belief that Trump’s toughest talk is often more leverage than law. Because who needs laws when you can just yell really loudly and then forget you ever said anything?

  • Trump again insisted in a speech at the World Economic Forum that the U.S. will need to take Greenland for its national security. Because obviously, the only way to secure the nation is to annex a country that’s basically a giant ice cube.
  • If foreign demand for U.S. Treasuries weakens, yields rise as a stress signal, which historically supports Bitcoin. Because nothing says “I trust your economy” like buying a bond that’s basically a high-interest loan to a guy who once called a hurricane “a disaster.”
  • The Crypto Fear and Greed Index has moved to the fear zone. Because when the market’s more nervous than a penguin in a sauna, you know things are going great.

Bitcoin (BTC) price rose to $90,232 while Ethereum rose by over 1.3% in the last 24 hours to $3,036. Because even the blockchain can’t handle the drama of a man who thinks he’s the CEO of the entire planet.

In his Davos statement, a doddering Trump again insisted that the U.S. will need to take Greenland for its national security. He said that the U.S. will rely on diplomatic channels to address the issue, as he ruled out military options. Because nothing says “diplomacy” like threatening to take a country’s land because you’re mad about a tariff.

Trump also said he “won’t use force,” and is not planning to impose the tariffs he threatened on regional countries on February 1. Because who needs consistency when you can just flip-flop like a confused seagull?

“Additional discussions are being held concerning The Golden Dome as it pertains to Greenland. Further information will be made available as discussions progress,” he later posted on Truth Social. Because nothing says “transparency” like a vague tweet about a “Golden Dome” that no one has ever heard of.

Trump also reiterated his goal of making the US the crypto capital of the world by implementing policies that are friendly to the industry. He cited the GENIUS Act, which focused on the fast-growing stablecoin industry, and the CLARITY Act, which has stalled in the Senate. Because when you’re the only one who knows what “CLARITY” means, you’re basically a superhero.

Why the crypto market crashed after Trump’s speech

The crypto market, at first, dipped after Trump’s speech, with the Crypto Fear and Greed Index falling to the fear zone of 32 from this month’s high of 60. Because when a man with a history of bad decisions starts talking about taking Greenland, even the most optimistic investors start questioning their life choices.

The crypto market also took a downturn thanks to a stalled CLARITY Act. The odds of it being signed into law this year fell sharply on the top prediction markets, Polymarket. Because nothing says “legislative progress” like a bill that’s more confusing than a crypto wallet password.

Liquidations in the crypto industry also contributed to the ongoing crypto market crash. Data compiled by CoinGlass shows that liquidations rose by 17% in the last 24 hours. Because when your leverage is higher than your self-esteem, it’s only a matter of time before you get wiped out.

Bitcoin’s bullish liquidations rose to $345 million in the last 24 hours. Similarly, Ethereum liquidations rose to $277 million. Other top liquidations were coins like XRP, HYPE, and DOGE. Because even the most absurd cryptocurrencies have their day in the sun-or rather, their day in the liquidation bin.

Crypto liquidations happen when exchanges close leveraged positions when losses mount and nears the margin level. A trader can prevent a margin call by adding more money to their positions. Or, you know, just not putting all your eggs in one basket. But where’s the fun in that?

Treasury auctions

The U.S. finances itself by issuing Treasury debt, which is sold through regular auctions to investors around the world. In those auctions, demand determines the interest rate, or yield, the government must pay. Because nothing says “trust us” like a government that’s constantly borrowing money from people who are increasingly unsure if they should.

When global investors trust the U.S. economy and its political stability, demand is strong and yields stay low. When confidence wavers, buyers demand higher yields to compensate for the risk. If bids are weak or absent, yields can spike sharply, signaling that U.S. debt is becoming less attractive. Because nothing says “economic stability” like a country that can’t even agree on its own policies.

That’s where the danger lies. Large foreign holders such as Japan and Canada wield outsized influence: if they were to sell Treasuries or stop rolling over maturing debt, yields would surge, borrowing costs across the economy would jump, and financial markets could seize up. In a worst-case scenario, the U.S. would struggle to fund itself, threatening the foundations of the global financial system. Because why have a stable economy when you can just panic and watch everything collapse?

Those concerns are no longer theoretical. For example, Swedish pension giant Alecta has been selling most of its U.S. Treasury holdings, citing increased risk and unpredictability in U.S. politics-an early warning sign that some long-term investors are reassessing whether U.S. debt is still a safe bet. Because nothing says “long-term investment” like selling your holdings because the country’s leader is a walking disaster.

So what?

If foreign demand for U.S. Treasuries weakens, yields rise as a stress signal, which historically supports Bitcoin’s role as a hedge against sovereign risk rather than as a risk asset. Because when the government is more unpredictable than a crypto market, even the most volatile assets look like a safe bet.

Public doubts from pension funds about U.S. policy or fiscal stability reinforce crypto’s appeal as a non-sovereign store of value, even if reallocations are small. Because who needs a government when you can just trust a bunch of anonymous people on the internet?

Any marginal shift toward alternatives like gold or inflation hedges can be meaningful for digital assets given their smaller market size. A softer dollar tied to weaker Treasury demand would further support Bitcoin and, to a lesser extent, Ethereum. Because when the dollar is weaker than a toddler’s resolve, even a rock can look like a good investment.

Read More

2026-01-22 01:08