Ethereum reclaims $3,000 amid minor crypto rebound as Trump calls off Greenland tariff threat

Prices for large-cap cryptocurrencies rebounded on Wednesday afternoon following news that President Donald Trump struck a ”long-term deal” with NATO regarding Greenland.

Bitcoin, the largest crypto by market cap, rebounded above $91,000 immediately following a post from Trump on Trust Social, where he said the U.S. has formed a “framework of a future deal with respect to Greenland” and that he “will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

Stocks and crypto prices have languished in recent days ahead of Trump’s looming tariff threat, which would impose new tariffs on goods from eight European countries. Bitcoin traded as low as $87,207 on Wednesday, amid two consecutive weak trading days. 

U.S. spot bitcoin and ether exchange-traded funds posted a combined net outflow of around $713 million on Tuesday, with experts pointing to macroeconomic uncertainty caused by geopolitical tension.

Likewise, the broad-based S&P 500 index recorded its steepest drop since October, falling 2.1% at market close on Tuesday. Stocks surged earlier on Wednesday after Trump ruled out the use of military force in Greenland, and continued higher following his Truth Social post.

Ethereum, the second-largest free-floating cryptocurrency, is once again up over the important psychological level of $3,000, up about 1.28% on the day. XRP and Cardano’s ADA, both popular tokens among retail traders, are up over 4%.

Leading digital asset treasuries and crypto mining firms have also seen a slight rebound, with the largest Bitcoin treasury Strategy and Ethereum DAT BitMine climbing 2.3% and 3.3%, respectively, according to The Block’s crypto equities tracker.

Liquidations pile up

According to CoinGlass, there has been over $1 billion worth of long and short liquidations over the past 24 hours of whipsaw trading.

Speaking to this volatility, liquidations over the past 12 hours were roughly split between long and shorts, with a combined $544.16 million wiped out. However, $215.88 million out of the $275.82 million shorts liquidated in that time frame occurred within the past four hours.

Bitcoin has traded between roughly $87,500 and $97,500 within the past hour, and is currently at $90,070 according to The Block's price chart.