Bitcoin falls below $88,000 then rebounds to $90,000 after Donald Trump’s soothing speech on Greenland-related tariffs.
The rebound signals a global macro relief, with easing rates, stock market recovery, and a decline in demand for safe-haven assets.
Altcoins follow suit without a bullish revival, confirming a simple stabilization and a persistent reliance on political signals.
Bitcoin dipped below $88,000 before bouncing back to $90,000 within hours. Ethereum followed a similar pattern. This swift turnaround underscores a persistent reality: crypto markets remain closely tied to macroeconomic indicators, especially political signals from Washington.
The sequence unfolded during the Asian session. After a new wave of selling triggered by trade tensions surrounding Greenland, the market abruptly shifted tone when Donald Trump softened his rhetoric in Davos, mentioning a “framework for a future agreement” and dropping immediate tariffs on concerned European countries.
Bitcoin: Volatility Dictated by Politics
At its lowest, Bitcoin touched around $87,300 during the US session, as the markets were still digesting the US president’s aggressive remarks and persistent jitters in the bond markets. The pressure quickly dissipated as the political message clarified.
This change in tone was enough to calm all markets. Futures on US indices turned positive, long-term Japanese bonds rebounded for a second consecutive session, and demand for safe-haven assets eased after the earlier peak in gold prices during the week.
In this context, Bitcoin’s rebound is not isolated. It reflects a simple realignment with a less anxious global sentiment, rather than a significant return of risk appetite.
Altcoins Follow Without Significant Revival
The movement was widespread. Ethereum surpassed $3,000 after slipping below the psychological threshold, limiting its daily losses. Solana bounced back around $130, XRP neared $1.95, Cardano rose to $0.37, and DOGE recovered some losses around $0.127.
However, the momentum remains restrained. The recoveries are partial, lacking significant volumes or major technical breakthroughs. The market’s message is one of stabilization, not a bullish restart.
The Myth of Decoupling Under Pressure
This episode recalls an often-forgotten truth in times of euphoria. Despite being considered an alternative asset, Bitcoin still behaves like a high-risk asset when macro visibility deteriorates. Trade tensions, rapid bond yield fluctuations, and political tone changes almost instantly impact prices.
The week was marked by high tension in rates, particularly in Japan, where a massive sell-off of long-term bonds pushed yields to record levels. This tightening of financial conditions led investors to reduce their exposure to speculative assets, with cryptos taking the hit.
The slight retreat in yields and the easing of political rhetoric provided a respite. But the observed volatility highlights how fragile the market remains.
A Market Hanging on the Next Signals
In the short term, attention is focused on the ability of Bitcoin to hold above $90,000. If the post-Davos relief fades, tensions could quickly resurface. The last two days have sent a clear message to traders: in the current environment, cryptocurrencies react less to internal fundamentals and more to geopolitical and bond market upheavals.
The carousel ride is likely far from over.
