Looks like yet again international politics is interfering with our market situation. Well I'm not going to go into details of the politics part as that is largely irrelevant and we could go by without knowing it. But I would like to address the dump we had yesterday. So if you were having a look at the market then you will see that in the past 2 days BTC has gone from $95,000 to $80,000 at the lowest point, and coming back to $90,000 and then failing again. And this is exactly what I want to talk about and how it was attributed by some macroeconomic factors.
Now let's get to it. We all know about the fiasco about Greenland. We all know who wants it and who currently owns it and a lot of other myriad of different details. But here's why this is important. A few days ago, the United States imposed a 10% tariff on a slew of European countries in retribution of them not agreeing to a deal over Greenland. So in retribution to that retribution Denmark dumped all its US bonds. Which was about 100 million or maybe 200 million. I don't remember correctly. This. Is this a panic set off? I know 100 or 200 million is not a lot of money. But it's not about the amount. Rather it's about the action. If other European countries follow suit then we are looking at about a trillion dollars in totality. If all this gets dumped obviously a big chunk of the US economy and the value of the dollar tanks too. So that is a possibility, although that hasn't happened yet. But the market works on such what-ifs. That's why about 700 billion to $1 trillion was already wiped out from the stock markets and a good chunk of money was also wiped out from the crypto markets. A lot of long positions have been liquidated. Why I claim that these incidents between the crypto market and the traditional financial markets are connected? Here is my answer to that. The United States also paused those tariffs just yesterday. The same 10% I was talking about earlier now what happened after that? The stock markets recovered. And along with it BTC went up to 90,000 along with different layer 2 coins gaining back a significant amount of what was lost.
So this is what I just saw. And my conclusion is that the crypto market is connected to the traditional markets more than ever now. And it actually might not be a very good thing.