Bitcoin Whipsaws Below $88K, Rebounds Toward $90K as Trump Softens Tariff Rhetoric
Bitcoin staged a sharp overnight reversal during Asian trading hours, briefly slipping below $88,000 before rebounding toward the $90,000 level, as global markets reacted to shifting signals from U.S. President Donald Trump at the World Economic Forum in Davos.
Bitcoin fell to around $87,300 late Wednesday as investors digested renewed geopolitical uncertainty, rising bond yields, and Trump’s earlier threats of trade retaliation against Europe. The pullback capped a volatile 24-hour period for crypto markets amid a broader global risk-off move.
Sentiment turned quickly after Trump walked back tariff threats tied to Greenland, saying the U.S. would refrain from imposing duties on European countries opposing Washington’s position, citing what he described as a “framework of a future deal.”
Macro Relief Triggers Crypto Bounce
The rhetorical shift helped calm broader financial markets. U.S. equity futures moved higher, Japanese government bonds rebounded for a second consecutive session, and haven demand cooled after gold touched fresh highs earlier in the week.
Bitcoin tracked that stabilization, climbing back toward $90,000 and erasing most of its overnight losses. The move highlighted how closely digital assets remain tied to macro developments during periods of heightened uncertainty.
Despite its positioning as an alternative asset, bitcoin continues to trade like a high-risk exposure when investors rush to protect capital. Abrupt changes in trade policy expectations, bond yields, and global liquidity conditions tend to spill rapidly into crypto markets—particularly when positioning is crowded.
Altcoins Mirror the Volatility
Major cryptocurrencies followed a similar pattern. Ethereum dipped below $3,000 during the selloff before recovering above $3,020, trimming its daily losses. Solana rebounded to around $130 after sliding earlier in the session, while XRP climbed back near $1.95.
Cardano rose toward $0.37 after touching weekly lows, and dogecoin recovered modestly to around $0.127. Overall gains across altcoins were limited, suggesting stabilization rather than a renewed risk-on push.
Bond Markets Remain a Key Driver
Bond market dynamics played a central role in the volatility. Earlier in the week, a sharp selloff in long-dated Japanese government bonds pushed yields to record levels, tightening global financial conditions and weighing on speculative assets.
By Thursday, yields eased after Japanese officials urged calm, reducing pressure on global rates and giving risk assets—including crypto—some breathing room.
Politics Still Moves Crypto
What stood out was the speed of the reversal. Crypto prices fell rapidly as Trump’s comments reignited fears of trade conflict and policy unpredictability, then rebounded just as quickly once the rhetoric softened.
As trading shifts across Asia and Europe, investors will be watching whether bitcoin can hold above $90,000—or whether the Davos-driven relief proves temporary. The past two days underscored a familiar reality: global politics and bond markets remain powerful forces shaping crypto price action.
