US President Donald Trump’s speech at the World Economic Forum (WEF) in Davos grabbed attention for his bold statements on tariffs, global trade, and cryptocurrencies.
Trump statements about the American position on Greenland, his threats to introduce tariffs on Europe, and the possible introduction of cryptocurrency regulations may have a long-term effect on foreign relations and the crypto market. According to President Trump, he is making efforts to make America the crypto capital of the world.
The crypto market has been put under heavy pressure as of late, with BTC price dropping to below $90,000. ETH is also struggling to hold its ground, testing key support levels around $2,900.
Trump Speech on Tariffs: Trade Tensions with Europe
The most striking thing about the speech of Trump was the threat of the tariffs that will be imposed in multiple European nations soon.
The US President unveiled the tariff he planned to impose 10% on products shipped by eight European countries, such as France, Sweden, Denmark, Norway, Finland, the Netherlands, the UK, and Germany.
The move is after the ever-growing objection to the US ambition to take over Greenland by these countries, as it would be crucial to the US security and the stability of the world at large.
The speech made by Trump was a very clear message that the US was not going to relent on its quest to obtain Greenland. According to him, it would not be the case that they would use military force to take control of the island, but the US, in case of such a confrontation, would not be stopped.
The introduction of tariffs that might increase to 25% by June 1 is viewed as a pressure tactic to make European countries negotiate with the US. These remarks have already resulted in a big US-EU trade accord being suspended, with the members of the European parliament raising concerns about the overall scope of the Trump strategy.
US Strategy on Greenland and Global Security
The rhetoric about Greenland remained dominant in the speech of Trump. He stressed that Greenland is the key to the US global security and the US can protect the island against external threats.
Trump made it clear that the US had military strength and that any threat to US supremacy would also be pointless, although he said he would not apply military force to seize Greenland.
Although he has adopted an aggressive tone, Trump has said that he would like to engage in peaceful talks with Denmark, urging that talks take place as early as possible on the future of Greenland. Nevertheless, the threat of tariffs is close, and therefore, the tension between the US and Europe may not fade soon.
These comments of the President are indicative of the fact that the US is insistent on gaining control of Greenland and that the result of these diplomatic talks will dictate relationships between the two regions.
What to Expect for the Crypto Market?
Bitcoin price dropped below $90,000, weighed down by weakening demand from both institutional and retail investors. Ethereum price is holding steady around the $2,900 support level, but the cryptocurrency market as a whole continues to face challenges.
BTC price has been on a bearish run following 5 days of downward movement. Ether and Ripple (XRP) are challenging major support zones, highlighting the vulnerability of the present market formation.
The recent decline in Bitcoin and Ethereum price is explained by a number of factors, such as geopolitical nervousness and forced sales.
Additionally, Bitcoin spot Exchange Traded Funds (ETFs) saw continued outflows for the second day, with $483 million withdrawn on Tuesday. The overall crypto market fell by 1.1% over the past 24 hours, extending a 7-day slide to 7.6%.
The crypto market will be keenly following the policies of Trump. The current market slump may be worsened by political and economic actions by the US and Europe. With the state of affairs evolving, the trade environment and the crypto market will be volatile.
Source: https://coingape.com/trending/trumps-speech-on-tariffs-at-davos-what-to-expect-for-crypto-market/
