Greenland Agreement Shakes the Market: Bitcoin ETF Loses $395 Million in a Day

The Greenland agreement framework announced by Trump not only involves geopolitical restructuring but also directly impacts the crypto market. On January 20th, the US spot Bitcoin ETF experienced a net outflow of $394.68 million, and Bitcoin’s price briefly dropped to $90,979. This reflects the ongoing pressure that geopolitical uncertainty exerts on risk assets.

Core Content of the Greenland Agreement

According to the latest news, the agreement framework announced by Trump after meeting with NATO Secretary General includes three main pillars:

Trump emphasized “not wanting to use force, nor will we use force,” but the essence of the agreement is the US’s strategic positioning in the Arctic. This move reflects the US’s focus on Arctic geopolitical competition and marks a reorganization of the post-Cold War Arctic landscape.

Market’s Immediate Reaction

ETF Capital Outflows Accelerate

Based on data from January 20th, the Bitcoin ETF capital flows are as follows:

• Spot Bitcoin ETF net outflow: $394.68 million
• Fidelity FBTC net outflow: $205.22 million
• BlackRock IBIT net outflow: $15 million
• Ethereum fund: $4.6 million inflow

This is the first significant outflow after four consecutive days of over $1.8 billion inflows into the spot Bitcoin ETF.

On-Chain Liquidation Data

Market volatility intensified after the Greenland agreement was announced. In the past 4 hours, the entire network experienced liquidations totaling $177 million, with long positions liquidated at $171 million, and short positions only $6.74 million. This indicates that bullish traders suffered heavy losses, and risk sentiment is rapidly deteriorating.

Cumulative Effect of Geopolitical Risks

Tariff Threats Continue to Escalate

The Greenland agreement is just the tip of Trump’s policies. According to the latest news, Trump also threatened to impose a 200% tariff on French wine and champagne and to impose new tariffs on countries supporting Greenland. The EU is considering tariffs on US goods worth $1.08 trillion.

Market Risk Sentiment Deteriorates

Citigroup downgraded European stocks for the first time in over a year, citing escalating transatlantic tensions and tariff uncertainties. This spread of risk sentiment is transmitting from traditional financial markets to the crypto market. Analysts warn that sustained macro pressure could push Bitcoin to between $67,000 and $74,000.

Deep Reflection

Why Do Geopolitical Events Affect the Crypto Market?

This is not just about risk sentiment transmission. When traditional financial markets face uncertainty, institutional investors tend to reduce exposure to high-risk assets. Bitcoin, as a risk asset, is among the first affected. Meanwhile, tariff escalations could lead to increased global trade friction, impacting economic growth expectations and further suppressing risk asset prices.

Implications of Trump Policies for the Crypto Market

It is noteworthy that Trump’s media group is pushing for crypto integration, planning to distribute tokens based on the Cronos blockchain to shareholders on February 2nd. This indicates a complex attitude of the Trump administration towards cryptocurrencies: on one hand, promoting policy uncertainty, and on the other, actively embracing crypto assets. This contradiction may continue to trouble the market.

Key Focus for Follow-up

Based on current market reactions, several key issues warrant ongoing observation:

• Whether the EU will truly impose tariffs on US goods and the scale of such tariffs
• Specific responses from NATO allies to the Greenland agreement
• The announcement of the Federal Reserve Chair candidate (expected next week) and its policy implications
• Whether Bitcoin can hold steady at the $67,000-$74,000 support level

Summary

The announcement of the Greenland agreement is not only a geopolitical event but also a catalyst for worsening risk sentiment in the crypto market. The $394.68 million ETF capital evaporation in one day reflects institutional investors’ concerns about macro risks. Against the backdrop of tariff threats and escalating NATO tensions, the crypto market is likely to face short-term pressure. However, in the long term, geopolitical uncertainty itself is a factor driving Bitcoin’s value as “digital gold.” The key is to distinguish between short-term volatility and long-term trends, and to seek opportunities amid policy uncertainties.