The outlook for financial and crypto markets experienced significant relief this Wednesday after President Donald Trump announced the suspension of planned tariffs on Europe. This decision, communicated after a productive meeting with NATO Secretary General Mark Rutte, pushed the S&P 500 to close with a solid 1.16% gain.
Within the digital asset space, Bitcoin and Ether recorded moderate gains, reflecting a positive response to lower tensions regarding transatlantic trade during these hours. According to official sources via Truth Social, the U.S. president decided not to proceed with the levies scheduled for February 1, which directly affected eight strategic European nations overall.
Although the structure of the original tariffs was not detailed, the news was enough for Bitcoin to rise 1.64%, reaching the 90,010 dollar mark. In this way, the financial and crypto markets demonstrate their sensitivity to foreign policy, consolidating a brief respite for investors who feared an escalation in global trade frictions during the week.
Mixed performance in stocks linked to the digital ecosystem
On the other hand, shares of companies related to the cryptographic sector showed disparate behavior following Wednesday’s presidential announcement. While Michael Saylor’s Strategy recorded a 2.23% increase at the close, the Coinbase exchange platform experienced a slight 0.35% drop, evidencing that volatility persists in the corporate tech sector despite the news.
Likewise, digital asset mining companies presented uneven results, with Riot Platforms falling 4.70% compared to Mara Holdings’ rise. This mixed scenario suggests that while financial and crypto markets benefit from geopolitical stability, internal factors of each company continue to dictate the course of their individual valuations and investor interest.
Fear sentiment persists despite rising prices
However, a curious fact has emerged amidst this price recovery: general sentiment has turned toward extreme dread. According to the Crypto Fear & Greed Index update, the score fell to 20, representing a state of “extreme fear” among retail traders, even though Ether and Solana rose 3.03% and 2.36% respectively today.
Is it possible that tariff uncertainty continues to weigh on investor sentiment? Some analysts suggest that the actual impact of tariffs on cryptocurrencies is often overestimated by retail traders during correction times. Nevertheless, the financial and crypto markets maintain a close correlation with White House decisions, generating sharp movements in response to changes in the commercial narrative.
In conclusion, the pause in imposing tariffs on countries like France, Germany, and the United Kingdom has provided vital short-term support. Although fear prevails in sentiment indicators, the financial and crypto markets have shown remarkable resilience, now awaiting clearer definitions on the framework of future trade agreements in the Arctic region and Greenland soon.
