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Why Trump's Greenland standoff is sending gold soaring and crypto tumbling
Fastcompany· 2026-01-20 14:29
Core Viewpoint - President Trump's new tariff threats against European nations, linked to his desire to acquire Greenland, are driving investors towards safe-haven assets like gold while pushing them away from riskier investments such as cryptocurrencies [1]. Group 1: Tariff Announcement - Trump announced additional tariffs of 10% on goods from eight European nations starting February 1, which include Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom [1]. - The tariffs are set to increase to 25% on June 1 and will remain until a deal for the complete purchase of Greenland is reached [1]. - Existing tariffs include a 10% tariff on goods from the United Kingdom and a 15% tariff on goods from the other mentioned countries, which means the new tariffs could raise the total levies to at least 25% next month and 40% in June [1]. Group 2: Strategic Importance of Greenland - Trump's rationale for acquiring Greenland is its strategic national security importance, as it lies between North America and Russia [1]. - Greenland is also noted for its vast mineral deposits and other natural resources, which hold significant market value [1]. Group 3: Market Reactions - The announcement has led to a surge in gold prices as investors seek safe-haven assets amid the uncertainty created by the tariff threats [1]. - Conversely, cryptocurrencies like Bitcoin are experiencing a decline as investors move away from riskier assets [1].