Bitcoin saw a sharp overnight swing during Asian trading hours, briefly sliding below $88,000 before rebounding toward $90,000, according to CoinDesk market data, after U.S. President Donald Trump softened tariff threats tied to Greenland during remarks at the World Economic Forum in Davos.
The rebound capped a turbulent period for crypto markets, which had been pressured earlier in the week by a global risk-off shift. Investor sentiment deteriorated following Trump’s confrontational stance toward Europe, a surge in global bond yields, and renewed unease across equity markets.
By Thursday morning in Asia, those headwinds began to fade, allowing digital assets to stabilize.
Bitcoin fell to around $87,300 late Wednesday as U.S. markets reacted to Trump’s rhetoric and bond market volatility lingered. Sentiment turned quickly after Trump said he would refrain from imposing tariffs on European countries opposing U.S. control of Greenland, instead referencing what he described as a “framework of a future deal.”
That change in tone helped steady broader markets. U.S. equity futures moved higher, Japanese government bonds extended their rebound for a second session, and demand for safe-haven assets eased after gold touched fresh highs earlier in the week.
Bitcoin tracked that stabilization, recovering toward $90,000 and erasing most of its overnight losses.
The episode underscores how closely crypto markets remain tied to macroeconomic and political developments during periods of uncertainty. Despite bitcoin’s reputation as an alternative asset, it often trades like a high-risk investment when investors move to preserve capital. Sudden shifts in trade policy, bond yields, and global liquidity frequently spill over into digital assets, particularly when market positioning is crowded.
Major tokens reflected a similar pattern. Ether dipped below $3,000 during the selloff before climbing back above $3,020, trimming its daily decline. Solana rebounded to around $130 after earlier losses, while XRP traded back near $1.95. Cardano recovered toward $0.37 after touching weekly lows, and dogecoin clawed back ground near $0.127. Gains across the market were modest, pointing to stabilization rather than a renewed appetite for risk.
What stood out was the speed of the reversal. Crypto prices fell quickly as Trump’s comments reignited fears of trade conflict and policy uncertainty, only to recover just as swiftly once the rhetoric softened. Such whipsaw moves have become increasingly common in a market where traders respond instantly to macro signals.
Bond markets played a central role. Earlier in the week, a sharp selloff in long-dated Japanese government bonds pushed yields to record levels, tightening global financial conditions and pressuring speculative assets. By Thursday, yields pulled back after officials urged calm, easing pressure across global rates and giving risk assets room to recover.
As attention shifts back to Asian and European markets, crypto traders will be watching whether bitcoin can hold above $90,000 or if the relief sparked by Davos headlines fades, allowing volatility to return. Recent price action has reinforced that global politics and bond markets remain key drivers of crypto market swings.
