Bitcoin and altcoins rally as Trump signals tariff pause, easing EU–US tensions

The crypto market moved greater after US President Donald Trump mentioned the USA would pause the imposition of latest tariffs following what he described as a “productive assembly” with NATO Secretary Basic Mark Rutte.

In an announcement posted on Fact Social, Trump mentioned the US had shaped the framework of a future settlement protecting Greenland and the broader Arctic area. He added that tariffs scheduled to take impact on 1 February would not go forward. 

The announcement appeared to ease instant geopolitical considerations that had weighed on danger property in current periods.

Supply: Fact Social

Crypto markets reacted swiftly, with broad-based positive factors throughout Bitcoin and main altcoins.

Bitcoin steadies as danger sentiment improves

Bitcoin was among the many instant beneficiaries of the shift in tone. The asset recovered from earlier weak point as merchants responded to the lowered chance of near-term commerce escalation between the US and its European allies.

On the time of writing, Bitcoin’s market capitalisation stood at roughly $1.79 trillion, remaining firmly above different digital property. 

The value transfer mirrored a broader “risk-on” response relatively than a Bitcoin-specific catalyst, with macro headlines as soon as once more shaping short-term market route.

Supply: Coinglass

Whereas Bitcoin had struggled in current days amid uncertainty round tariffs and transatlantic relations, Trump’s remarks helped stabilise sentiment and cut back draw back strain.

Altcoins outperform as capital rotates

Altcoins posted stronger proportion positive factors than Bitcoin, suggesting renewed urge for food for higher-beta property. 

Ethereum, the second-largest cryptocurrency, rose alongside the broader market, with its market capitalisation hovering round $361 billion.

Layer-1 tokens resembling Solana and XRP additionally moved greater. On the similar time, a number of mid-cap property recorded outsized positive factors as merchants rotated again into risk-sensitive segments of the market. 

The development was seen throughout sector-based efficiency, together with good contract platforms, DeFi-related tokens, and choose meme property.

Market heatmap knowledge confirmed widespread inexperienced throughout most classes, indicating that the rally was not confined to a single narrative or ecosystem.

Macro headlines stay the dominant driver

Trump’s assertion adopted days of heightened concern round EU–US commerce relations. In the present day, European officers signalled a pause in progress on the Turnberry commerce framework amid disputes linked to Greenland and tariff threats.

By confirming that tariffs wouldn’t be imposed as deliberate, the announcement lowered instant macro uncertainty. This issue has more and more influenced crypto worth motion alongside conventional markets.

The response underscores how intently digital property stay tied to international danger sentiment, with geopolitical and commerce developments persevering with to behave as key short-term catalysts.

Closing Ideas

• Trump’s resolution to pause tariffs helped elevate market sentiment, triggering a broad crypto rally led by altcoins.
• The transfer highlights crypto’s continued sensitivity to macro and geopolitical developments, notably round international commerce tensions.