Ethereum And Bitcoin Rebound As Trump Calls Off Greenland Tariff Threat

TLDR

Table of Contents

Ethereum surged back to $3,000 as Bitcoin rebounded above $91,000 on January 21, 2026.
Trump’s announcement on Greenland tariffs boosted investor confidence, driving crypto recovery.
Spot Bitcoin and Ethereum ETFs saw $713M in outflows amid market uncertainty.
XRP and Cardano’s ADA posted gains of over 4%, alongside Ethereum’s price recovery.

Bitcoin and Ethereum saw a brief resurgence on Wednesday, following a key announcement from former U.S. President Donald Trump. The rally in digital asset prices came shortly after Trump revealed that he would no longer impose new tariffs on eight European nations. This statement brought relief to the broader market, with Bitcoin rebounding above $91,000 and Ethereum climbing back above the $3,000 mark.

Crypto Prices Rebound After Trump’s Announcement

The cryptocurrency market experienced a modest recovery on Wednesday afternoon. The announcement from Trump, confirming that the U.S. would not impose tariffs on European goods related to Greenland, spurred the brief uptick in crypto prices. Bitcoin, which had dropped to $87,207 in recent days, rose by 0.87%, surpassing the $91,000 mark.

Ethereum also saw a notable increase, gaining about 1.28% on the day. It reclaimed the important psychological level of $3,000, signaling renewed optimism among crypto investors. XRP and Cardano’s ADA, two popular tokens with retail traders, also posted gains, both rising more than 4% by the end of the trading session.

The announcement from Trump was viewed as a critical factor in the market’s bounce-back. For several days, the prospect of new tariffs had dampened market sentiment, leading to a broader downturn in both crypto and traditional markets. Following the statement, stocks, including the S&P 500, also showed positive movement.

Bitcoin and Ethereum ETFs See Outflows Amid Market Uncertainty

While the cryptocurrency market rebounded, there were still signs of caution. U.S. spot Bitcoin and Ethereum ETFs experienced a combined net outflow of $713 million on Tuesday. This outflow came amid ongoing concerns over the broader economic environment, with geopolitical tension contributing to uncertainty in both stock and crypto markets.

Market analysts pointed to macroeconomic factors, including trade tensions and shifting market sentiment, as reasons for the ETF outflows. Despite this, the announcement of a potential resolution to the Greenland tariff issue gave investors hope, sparking the slight recovery in the crypto sector.

The performance of ETFs has become a focal point for crypto investors, as these products are seen as an indicator of institutional interest in digital assets. While the rebound in prices was welcome, concerns about broader market instability remain.

Global Market Volatility Plays a Role in Crypto Movements

The broader global economic backdrop has been a driving force behind recent volatility in the crypto market. The S&P 500’s steep drop on Tuesday highlighted the extent of market uncertainty. The index fell 2.1% at the close of trading, marking its worst decline since October.

Trump’s announcement helped to stabilize the market, at least temporarily, as it signaled a potential de-escalation of geopolitical tensions. With the tariffs now off the table, investors are cautiously optimistic about the short-term outlook for both stocks and cryptocurrencies.

Despite the brief rebound, analysts caution that the overall market sentiment remains fragile. Cryptocurrency prices, including Bitcoin and Ethereum, remain susceptible to broader economic developments. The crypto market’s dependence on external factors, such as regulatory changes and global trade relations, remains high.

Ethereum’s Resurgence: A Positive Sign for the Crypto Market

Ethereum’s recovery to the $3,000 mark is seen as a positive development for the digital asset space. Ethereum, often viewed as the second most important cryptocurrency after Bitcoin, plays a pivotal role in the broader crypto ecosystem. The recent price increase is seen as a sign of resilience, suggesting that investor confidence in Ethereum remains strong.

Ethereum’s recovery has been fueled in part by the growth of decentralized finance (DeFi) applications and continued interest in blockchain technology. Ethereum 2.0, the network’s long-awaited upgrade, is expected to bring further improvements, potentially driving additional price growth in the coming months.

The success of Ethereum in regaining the $3,000 threshold is significant not only for investors but also for the broader cryptocurrency community. It shows that, despite market challenges, key cryptocurrencies continue to hold substantial value, helping to shape the future of digital assets.