While Donald Trump seems serious about annexing Greenland, the financial markets are reeling with fear. Bitcoin (BTC) has fallen below $90,000 again, stock markets are faltering, and gold has exceeded $4,800 for the first time. Let’s take a closer look.
Bitcoin (BTC) falls back below $90,000, dragging the crypto market down with it
It comes as no surprise that Bitcoin (BTC) and the rest of the cryptocurrency market have been in a state of uncertainty for several months. Since November, BTC has been trying unsuccessfully to regain the famous $100,000 level, but after rising to nearly $98,000 last week, the asset finally fell back below $90,000 overnight.
At the time of writing, one bitcoin is trading at $89,500, down 1.58% over the last 24 hours.
With more than $1 billion in liquidations on the derivatives markets on Monday, this was a dark day for the crypto market, the worst since November 21:
Among the top 20 cryptocurrencies, some declines are more pronounced than others, such as ETH and BNB, which lost 4.6% and 4.2% respectively, HYPE, which fell 7.7%, and even worse, XMR, which collapsed by nearly 16%.
While Bitcoin and Ethereum ETFs recorded outflows of $483.38 million and $229.95 million, respectively, the stock markets as a whole seem to have been gripped by fear.
A fear shared by the stock markets
The Dow Jones, S&P 500, and Nasdaq each closed Monday down 1.76%, 2.06%, and 2.39%. While we will have to wait and see how investors react when European markets open this morning, the CAC 40 ended Monday down 0.61%, while the DAX lost 1.03%.
Asian markets fared better, with the Nikkei 225 down 0.47% and the Shanghai Stock Exchange up slightly by 0.08%.
In contrast, gold is breaking record after record, claiming a rise of more than 12% since the beginning of the year, after exceeding $4,800 an ounce in recent hours:
Once again, this climate of fear comes from the United States, as Donald Trump attempts to take American imperialism to another level. What seemed like a mere joke at the beginning of his term, the possible annexation of Greenland, has become a much more serious issue in recent days, putting European military forces on high alert.
Expected this afternoon at the Davos Economic Forum, the US president could reveal more about his intentions, although for the moment he has contented himself with brandishing his favorite threat: tariffs.
For example, Donald Trump has threatened to tax French wines at up to 200% or to add 10% to all goods from several European countries, including France, Denmark, and Germany, starting February 1, and then 25% starting in June. While last year the European Union (EU) and the United States agreed on tariffs of around 15%, the EU is now threatening to suspend the agreement.
