Geopolitical Tensions and Market Reactions
The geopolitical tension regarding Greenland continues to unfold daily, with the latest development shaping up a high-level meeting among several leaders in Davos, Switzerland. As it has happened on Monday morning, BTC has headed south, dropping to another weekly low. At the same time, gold has reached a fresh all-time high above $4,700/oz.
Following the developments from the weekend, in which Trump announced a new set of 10% tariffs against eight EU nations that sent troops to Greenland in order to persuade them to agree to sell the island to the US, the tension between the two sides has skyrocketed.
Legacy media reported that France wants the EU to use its “trade bazooka,” which would severely limit the US’s access to European markets – a weapon that has never been used before.
Diplomatic Engagements
In the past 12 hours alone, Trump said he had received a text message from French President Macron, inviting him to a meeting in Paris on Thursday after the World Economic Forum in Davos with representatives from Ukraine, Denmark, Russia, and Syria.
Additionally, the POTUS posted on his social media platform TruthSocial that he had a “very good telephone call” with the Secretary General of NATO, Mark Rutte, concerning Greenland. He said he agreed to meet with “various parties” in Davos but reaffirmed his belief that the acquisition of the island is “imperative for National and World Security.”
Market Performance: Bitcoin and Gold
In response to the latest developments, BTC’s price slipped once again. This time, the asset fell from almost $93,500 to under $91,000 to mark a weekly low. Before that, the cryptocurrency was rejected at $95,500 on Monday morning after the Asian and some futures markets opened following a quiet weekend.
In contrast, gold has skyrocketed to another all-time high of almost $4,730/oz. The precious metal is up by over $120 since Monday morning when markets opened after the weekend escalation.