U.S. stock and cryptocurrency markets rose on Wednesday after U.S. President Donald Trump said he would not pursue proposed tariffs on several European countries.
The S&P 500 closed the trading day up 1.16% on Wednesday, hours after Trump he said in Truth Social that he had a “very productive meeting” with NATO Secretary General Mark Rutte and would not continue work on tariffs scheduled for February 1.
The tariffs affected eight European countries, including Denmark, Norway, Sweden, Great Britain, France, Germany, the Netherlands and Finland. Trump did not provide details on the structure and implementation of the tariffs.
“We have created a framework for a future agreement for Greenland, and indeed for the entire Arctic region. This solution, if finalized, will be great for the United States of America and all NATO nations,” Trump said.
Cryptocurrency stocks mixed, major coins rise
Cryptocurrency-related stocks reacted mixed after the announcement, with Michael Saylor Strategy (MSTR) ending the trading day up 2.23%, while the stock price of cryptocurrency exchange Coinbase (COIN) fell 0.35%. According to to Google Finance.
Crypto mining stocks were similarly choppy, with Riot Platforms down 4.70% and Mara Holdings ( MARA ) up 1.83%.
Major crypto assets rose slightly. Since Trump’s announcement, the price of Bitcoin (BTC) has increased by 1.64% to $90,010, while Ether and Solana (SOL) have increased by 3.03% and 2.36%, respectively. According to to CoinMarketCap.
Cryptocurrency market sentiment is turning to fear despite higher prices
While the cryptocurrency market has risen modestly, the overall sentiment towards the market has become more fearful.
Related: US crypto car Sacks says banks and cryptocurrencies will merge into ‘one digital asset industry’
Crypto fear and greed Index in Thursday’s update, it had an “extreme fear” score of 20, down four points from Wednesday.
Some analysts have argued that Trump’s tariffs are often overstated in terms of their impact on cryptocurrencies.
In October, cryptocurrency sentiment platform Santiment found that retail cryptocurrency traders were quick to blame Trump’s 100% rate for broader market declines as they often look for something to point the finger at during a downturn.
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