Trump Announces New Tariffs

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Market Snapshot: Overnight Moves

Daily Updates:

• After rallying as high as $97K last week and sideways trading over most of the weekend, BTC sold off in tandem with US equity futures late on Sunday night, which fell more than 1%. 
• BTC dropped 3% in the space of an hour and now currently changes hands below the $95K resistance level at $93K. 
• The move extended to the wider crypto market also. ETH is currently down more than 3% in the past 24 hours, below the $3,300 support level that it had held for most of last week, while SOL, XRP, DOGE and ADA are all down more than 6% over the same period.
• According to Coinglass, $873.97M of positions were liquidated overnight, with the majority ($788.42M) being long positions. 
• Spot Bitcoin ETFs failed to continue their inflow momentum on Friday, selling $394.7M of bitcoins and ending a four day cumulative inflow streak. Spot Ethereum ETFs saw very modest inflows of $4.7M on Friday, which nonetheless was enough to mark the fifth straight day of inflows. 

• After bouncing back in Thursday’s trading session, US equities were unable to maintain that momentum into Friday and the S&P 500 ended the day slightly down. 
• Friday marked the 11th straight session where small-cap stocks, as measured by the Russell 2000 gauge, outperformed the S&P 500.
• According to Bloomberg Intelligence, since 1979 there have been only five other instances where the Russell-2000 opened with a 500bps lead over the S&P 500 in the first month of the year. 
• Interestingly, in four of those years the index ended up outperforming the S&P 500, with 2021 being an exception. 
• So far year-to-date, the Russell-2000 is up 6.76%, compared to a 1.19% gain in the S&P 500. 

• Geopolitical tensions around President Trump’s desire to acquire Greenland are weighing on macro risk sentiment. In a Truth Social post over the weekend, Trump announced a 10% tariff on goods coming from European countries supporting Denmark, the next development in his campaign to buy Greenland. 
• In the post he said that the tariffs will come into effect from Feb 1 and will rise to 25% in June unless “a Deal is reached for the Complete and Total purchase of Greenland.”
• The tariffs will apply to a number of NATO countries, including: Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland. 

• According to Bloomberg, representatives from the EU’s 27-country bloc have approved retaliatory tariffs on €93B ($108B) of US goods, though have suspended their implementation until such time that Trump enacts the 10% duties. 
• EU lawmakers are also looking to pause the approval of the trade deal that European Commission President Ursula von der Leyen struck with President Trump last summer. That EU-US trade agreement has already been partly implemented, but still requires approval from parliament and saw a 15% tariff on EU goods coming into the US. 
• Manfred Weber, president of the European People’s Party, the largest political group in the European Parliament, said “The EPP is in favour of the EU-US trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage”, adding that the EU agreement to lower tariffs on “US products must be put on hold.”
• EU leaders will also hold an emergency meeting later this week to explore other retaliatory measures. European Council President Antonio Costa and President Ursula von der Leyen said in a joint statement that the “Tariffs would undermine transatlantic relations and risk a dangerous downward spiral. Europe will remain united, coordinated, and committed to upholding its sovereignty.”

• The tariff tensions helped bolster another rally in precious metals. Spot gold climbed 1.4% to another record high above $4,660 per ounce, while silver prices jumped up more than 2.5%. 

• On Friday, US treasuries fell across the curve as President Trump indicated that the more dovish of the two main candidates for the next chairmanship of the Fed may no longer be a front runner. 
• During a White House event Trump said to the Director of the National Economic Council, Kevin Hassett, “I actually want to keep you where you are, if you want to know the truth. If I move him, these Fed guys — certainly the one we have now — they don’t talk much. I would lose you. It’s a serious concern to me.”
• The 10-year treasury yield climbed 6bps to 4.22%, while the 2-year yield rose more than 3bps to 3.59%.
• Prior to Trump speaking, traders on Polymarket priced the odds for Kevin Hassett at 36% and Kevin Warsh at 44%. Those odds are now 7% and 61%, respectively. 

• Ethereum is processing more transactions than ever, but it’s also cheaper to use than it has been in a long time.
• The seven-day average is close to 2.5M transactions a day, nearly twice what it was a year ago, yet average fees are around $0.15, and some everyday actions can cost even less.
• A big reason is that Ethereum’s recent capacity upgrades have taken pressure off the system: the December 2025 Fusaka upgrade introduced PeerDAS and set up a path to expand blob throughput, and a January 8 “blob parameters only” update pushed the blob target to 14 and the max to 21, making it cheaper for Layer 2s to post data back to Ethereum.
• On top of that, Ethereum also increased its mainnet gas limit (from roughly 45M to 60M in late November), so the base layer can fit more activity per block, keeping fees lower.
• At the same time, stablecoins are driving a large share of usage (about 35-40% of transactions).

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