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Trump Rules Out Force Over Greenland at Davos, Bitcoin Briefly Rallies Despite Weekly Slide
- Trump ruled out military force and tariffs regarding Greenland, shifting toward a diplomatic “framework” that eased immediate geopolitical tensions.
- Bitcoin briefly rallied to $90,000 on the news before retreating to $87,000, despite record outflows of $709 million from US spot ETFs.
- Denmark’s Prime Minister welcomed the softer tone but maintained that Greenland’s sovereignty is not up for negotiation.
President Donald Trump eased fears around the Greenland dispute on Wednesday after saying he would not use military force and would step back from tariff threats aimed at European allies.
He said during a speech in Davos that the US had a “framework of a future deal” following talks linked to NATO Secretary General Mark Rutte.
Trump again argued that the US has a strategic interest in Greenland, citing concerns over Russian and Chinese influence in the Arctic.
But he explicitly ruled out using force and later confirmed on Truth Social that tariffs would not be used to pressure allies.
Read more: Bitcoin Whipsaws Higher After Trump Signals Greenland Deal, Drops EU Tariff Threat
Mixed Market Response
Denmark’s Prime Minister Mette Frederiksen responded cautiously. She welcomed the shift away from threats but rejected the idea of negotiations over sovereignty, saying Denmark cannot negotiate ownership of Greenland.
The market response was mixed beneath the surface. Despite the price rebound, US-listed crypto funds saw heavy withdrawals. Spot Bitcoin ETFs recorded US$709 million (AU$1.09 billion) in net outflows on Wednesday, the largest single-day exit since Nov. 20, according to CoinGlass. Spot Ethereum ETFs lost US$287 million (AU$439 million). These figures do not include European-listed products.
Markets reacted to the softer tone. Bitcoin rose from around US$87,000 (AU$133,110) to near US$90,000 (AU$137,700) two days ago, reversing losses from earlier in the week when tariff uncertainty had pushed risk assets lower.
However, today, Bitcoin is trading around US$87,000 (AU$133K), down about 9% over the past week. Ethereum was around US$2,857 (AU$4.1K), down roughly 13%, according to CoinMarketCap.
Similarly, CoinShares head of research James Butterfill said investor sentiment toward digital-asset investment products turned negative late last week as geopolitical tensions increased. Even so, European crypto funds still recorded US$113 million (AU$173 million) in net inflows over the same period, showing a split between U.S. and European investor behavior.
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Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
