US markets are witnessing a rebound following a decline in tensions over the Greenland issue. As of the preparation of this article, significant data releases were imminent. Bitcoin has surged beyond $90,000, and altcoins are recording gains surpassing 2%. With the week drawing to a close, the dispersal of dark clouds is viewed positively in the markets.
US and European Markets
The ongoing relief rally fueled by Trump’s decision on Greenland and the surge in the artificial intelligence sector has positively impacted equities. After the recent major sell-offs, US stock markets are regaining ground. S&P 500 futures rose by 0.5% after marking its biggest increase since November, while Nasdaq 100 contracts increased by 0.8%, with stocks of companies linked to AI infrastructure climbing in pre-market trading.
Assets such as gold, treasury bonds, and money markets are experiencing volatility. As silver retreats, risk assets are finding relief, though it’s uncertain how long this will persist, as Trump could potentially introduce another contentious topic in the meantime.
While the specifics of the agreement with NATO remain undisclosed, Trump has expressed satisfaction. On Thursday, the NATO Secretary-General clarified that the agreement does not cover sovereignty issues in the region. Perhaps Trump was employing his usual negotiation tactic of “ask for more, settle for less,” exaggeratedly demanding that Greenland be included within US borders.
The S&P 500 has not yet recovered its weekly losses, whereas gold is set to achieve its largest weekly gain since October. Consequently, unless Trump abruptly changes his stance, there is substantial upward potential in risk markets. Bitcoin, for its part, needs to reclaim the $94,000 level lost due to the Greenland issue.
Will Trump Act Erratically Again?
Trump wanted Greenland to be included within US borders and was willing to make significant payments for it. However, he announced an agreement with NATO yesterday. Recent statements indicate that he has relinquished his territorial demand, which could contribute to the continuing relief rally in cryptocurrencies.
“The US can establish as many bases in Greenland as it wishes. The US will have all the military access it needs in Greenland.
If we don’t get the Supreme Court decision we want on customs duties, we will take other actions.”
The reference to the Supreme Court poses another potential challenge. Experts do not expect a decision before February 20, and this issue is likely to continue exerting pressure on risk markets next month. Additionally, the delisting risk for MSCI’s crypto-reserve companies has not been eliminated.
