Amidst President Trump's renewed push to acquire Greenland, Bitcoin has failed to act as a safe haven asset, highlighting its risk-on nature in times of geopolitical uncertainty. Trump's recent reaffirmation of his intention to annex Greenland has triggered market volatility, with investors flocking to traditional safe-haven assets like gold, which has surged to record highs. In contrast, Bitcoin has experienced a downturn, losing ground as investors de-risk their portfolios.
Trump's interest in Greenland is not new. The United States has a long history of considering acquiring the territory, dating back to the 19th century. In 1946, the U.S. secretly offered to buy Greenland, but Denmark rejected the offer. During his first presidency, Trump again expressed his desire for the U.S. to purchase Greenland, an idea that was dismissed by the Danish Prime Minister as "absurd".
Recently, Trump stated that the U.S. "had to have" Greenland, dismissing potential opposition from European leaders. He also mentioned a "very good" call with NATO Secretary General Mark Rutte regarding the issue, indicating that discussions are ongoing. Trump even suggested that a "framework of a future deal" had been agreed upon with Rutte. However, Greenlandic politicians have denied the existence of any such deal, calling Trump's statements "completely crazy".
These pronouncements initially led to the threat of tariffs on European countries. Trump announced he would apply an extra 10% tariff on Denmark, the UK, and six other European countries, which would increase to 25% on June 1, 2026, until a deal was reached for the "complete and total purchase of Greenland". He justified these tariffs by claiming these countries were engaged in a "very dangerous game" related to Greenland. However, Trump later reversed course, calling off the threatened tariffs after talks with Rutte.
The situation has broader implications for international relations and defense. The Danish government has affirmed it would defend its territory and invoke Article 5 of NATO if attacked by the U.S. Experts have warned that a U.S. annexation of Greenland could effectively end NATO.
Billionaire Frank Giustra has pointed to the Greenland situation as evidence that "Bitcoin is not gold," arguing that gold is a true safe-haven asset while Bitcoin is a risk-on asset. This perspective is reinforced by Bitcoin's recent price movements, which reflect its sensitivity to geopolitical tensions.
While Trump has stated he "won't use force" to acquire Greenland, and has agreed to a "framework of a future deal" with NATO Secretary-General Mark Rutte, the situation remains fluid. Whether a deal materializes remains to be seen, but the episode underscores that Bitcoin's performance is still tied to global risk sentiment, and is not yet seen as a reliable safe haven during times of geopolitical turmoil.
