Bitcoin reclaimed $90,000 on Wednesday afternoon after President Donald Trump backed away from threats of imposing tariffs on several European countries over the Greenland issue.
The leading digital asset had fallen to $87,300 by midday after Trump delivered his speech at the World Economic Forum in Davos, according to CoinGecko.
In his remarks, Trump said Washington was seeking immediate negotiations to acquire Greenland but emphasized that military force would not be used.
Market concerns were reignited over the weekend after Trump signaled plans to impose 10% tariffs starting Feb. 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and other NATO allies unless they agreed to his demands related to Greenland. He also warned that tariffs could rise to 25% by June if no agreement was reached.
The tariff threats stoked fears of an escalating trade dispute with Europe. On Jan. 19, Bitcoin retreated toward $92,000 amid thin holiday trading in global markets.
On Jan. 20, investor anxiety became more pronounced. US stocks plunged. The S&P 500 fell about 2%, the Dow dropped nearly 1.8%, and the Nasdaq slid about 2.4%, marking the biggest one-day drop in months.
The sell-off extended to global markets, with stocks, bonds, and the US dollar all weakening.
Markets reversed course after Trump announced he had a productive meeting with NATO Secretary General Mark Rutte and revealed a framework for a future deal on Greenland and the Arctic region.
The easing tone reassured investors who had worried trade tensions with Europe could spiral into another tariff-driven shock similar to last year’s “Liberation Day” episode.
Major indexes, including the S&P 500, Nasdaq 100, and Russell 2000, all jumped, with small-cap stocks leading gains and fully recovering losses from the previous session. Every sector participated in the rally, with energy stocks outperforming.
Gold and silver initially fell on the news as risk appetite improved, though both precious metals quickly rebounded.
