Bitcoin stabilized above $93,000 during Monday’s U.S. session after an overnight sell-off pushed prices down to roughly $91,800, as renewed trade-war threats from Washington weighed on risk assets. The move followed remarks from U.S. President Donald Trump signaling potential new tariffs on Denmark and other European nations amid a dispute tied to Greenland.
Trading conditions were thin with U.S. markets shut for a holiday, helping bitcoin recoup part of its losses, though it was still down about 2% on the day. Ether fell more sharply, sliding 3.7% to trade just above $3,200, while declines spread across the broader crypto complex. Solana, Dogecoin, Cardano, Chainlink and Avalanche dropped between 5% and 6%, and Sui sank more than 10%.
Outside crypto, gold extended its rally, touching a fresh record near $4,700 per ounce as investors sought refuge from rising geopolitical uncertainty. The metal is now up more than 70% over the past 12 months.
Matt Howells-Barby, vice president at Kraken, said the pullback reinforced a broader pattern of fragility in crypto markets. Since the Oct. 10 crash, he noted, the asset class has shown “asymmetric downside risk,” with negative headlines prompting sharper reactions than positive developments.
Bitcoin had been positioned near levels that could have supported additional upside, Howells-Barby said, but geopolitical headlines quickly undercut that momentum. Even so, the relatively limited drawdown of roughly 3.5% suggests some traders may be anticipating a softening in tariff rhetoric — a setup commonly referred to as the “TACO” trade.
With political and business leaders gathering in Davos for the World Economic Forum, Howells-Barby warned that crypto markets are likely to remain volatile in the coming days, responding to any signals of escalation or de-escalation in EU-U.S. trade tensions.
Renewed conviction
Analysts at Bitfinex said selling pressure from long-term bitcoin holders has continued to ease, with weekly distribution falling to around 12,800 BTC from peaks above 100,000 BTC earlier in the cycle.
However, they cautioned that bitcoin faces a dense resistance zone between $93,000 and $110,000, where previous rallies have struggled to gain traction.
“For a more durable rally to emerge, market structure needs to shift toward a regime where maturing supply outweighs long-term holder spending,” the analysts said.
They added that similar conditions were observed between August 2022 and September 2023, and again from March 2024 through July 2025 — periods that ultimately preceded stronger and more sustained bitcoin advances.
“A transition of this nature would signal renewed conviction among long-term holders and reduce sell-side pressure,” the analysts said.
