US Stocks, Crypto Inch Higher After Trump Backs Down From Tariffs

US stocks and the crypto market showed signs of life on Wednesday after US President Donald Trump stood down on tariffs tied to his efforts to claim Greenland.

The S&P 500 closed the trading day up 1.16% on Wednesday, hours after Trump said on Truth Social that he had held a “very productive meeting” with NATO Secretary General Mark Rutte and would not be moving forward with tariffs scheduled for Feb. 1. 

The tariffs had targeted eight European countries, including Denmark, Norway, Sweden, the United Kingdom, France, Germany, the Netherlands and Finland.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region. This solution, if consummated, will be a great one for the United States of America, and all NATO Nations,” Trump said.

Crypto stocks mixed, major coins edge higher

Crypto-linked stocks had a mixed reaction after the announcement, with Michael Saylor’s Strategy (MSTR) closing the trading day up 2.23%, while the share price of crypto exchange Coinbase (COIN) slipped 0.35%, according to Google Finance. 

Crypto mining stocks were similarly uneven, with Riot Platforms down 4.70% and Mara Holdings (MARA) up 1.83%.

The spot price of the major crypto assets by market capitalization all moved slightly higher after Trump’s announcement. 

Bitcoin (BTC) has risen 1.64% to $90,010, while Ether and Solana (SOL) have risen 3.03% and 2.36%, respectively, according to CoinMarketCap.

Crypto sentiment turns to fear despite higher prices

While the crypto market has risen modestly, the overall feeling toward the market has become more fearful.

Related: US Crypto czar Sacks says banks, crypto will merge into ‘one digital asset industry’

The Crypto Fear & Greed Index fell to an “Extreme Fear” score of 20 in Thursday’s update, down 4 points from Wednesday.