Trump's recent decision to withdraw his tariff threats against eight EU countries (over Greenland disputes) marks a major de-escalation in US-EU trade tensions, sparking rallies across risk assets including crypto.

Why It's Bullish for Crypto

Tariff threats had triggered $875 million in crypto liquidations and a Bitcoin drop to $92K, as markets fled to safety amid fears of global trade wars and inflation spikes. Canceling them restores risk appetite, lifting BTC 1.7%+, ETH 2.6%+, and alts like XRP/DOGE in tandem with surging stocks and rebounding European shares.

Key Market Benefits

Reduced Macro Volatility: No escalation means lower uncertainty, drawing institutional inflows back to high-beta assets like Bitcoin, which thrives in stable liquidity environments.

Inflation Hedge Narrative Strengthens: Avoided tariffs prevent supply chain disruptions and price hikes, but keep BTC's store-of-value appeal intact without trade-war chaos.​

Global Liquidity Flows: De-escalation boosts cross-Atlantic capital mobility, benefiting crypto exchanges and DeFi on platforms like Binance.​

This pivot signals policy pragmatism under President Trump, fueling optimism for 2026 crypto gains. #trumpcancelseutariffthreat