TLDR
- Bitcoin fell below $88,000 then rebounded toward $90,000 after Trump walked back tariff threats on European nations over Greenland during his Davos appearance.
- The crypto market reversal mirrored moves in traditional markets, with equity futures rising and bond yields stabilizing after Trump’s policy shift.
- Ethereum, Solana, XRP, Cardano and dogecoin all followed similar patterns of quick drops and partial recoveries.
- Stock futures rose Thursday morning with Dow futures up 0.1%, S&P 500 futures up 0.2%, and Nasdaq 100 futures up 0.4%.
- Major stock indexes surged over 1% Wednesday after Trump announced he would not impose tariffs scheduled for February 1st.
Bitcoin staged a sharp reversal in Asian trading hours on Thursday, dropping below $88,000 before recovering toward $90,000. The move came after President Donald Trump softened his stance on tariffs during his appearance at the World Economic Forum in Davos.
The crypto market had been under pressure earlier in the week. A global risk-off wave pushed prices lower as investors reacted to Trump’s threats toward European nations.
Crypto Markets Follow Traditional Assets
Trump’s comments on Wednesday triggered immediate market reactions. He said he would not impose tariffs on European nations that opposed U.S. control of Greenland. The president cited a “framework of a future deal” with NATO Secretary General Mark Rutte.
🇺🇸 Trump says talks with NATO leadership led to a framework covering Greenland and the Arctic.
⏸️ Planned tariffs for February 1 are now on hold as negotiations continue. pic.twitter.com/0X525aTOrG
— Trader Edge (@Pro_Trader_Edge) January 22, 2026
Bitcoin briefly touched $87,300 late Wednesday during U.S. trading hours. The selloff reflected broader anxiety across financial markets as bond yields jumped and equity markets declined.
By Thursday morning in Asia, sentiment had shifted. U.S. equity futures turned positive and Japanese government bonds rebounded for a second session. Bitcoin climbed alongside these moves, erasing most of its overnight losses.
Other major cryptocurrencies followed the same pattern. Ethereum dipped below $3,000 before recovering above $3,020. Solana rebounded to around $130 after earlier declines.
XRP traded back near $1.95 while Cardano rose toward $0.37. Dogecoin recovered some losses near $0.127. The gains across the board were modest, suggesting stabilization rather than a strong rally.
Stock Markets Extend Wednesday’s Rally
Stock futures continued their upward move Thursday morning. Dow Jones Industrial Average futures rose 0.1% while S&P 500 futures gained 0.2%. Nasdaq 100 futures advanced 0.4%.
Wednesday’s regular trading session saw major indexes surge over 1%. The S&P 500 and Nasdaq Composite posted their best days of 2026. The rally started after Trump’s tariff announcement and accelerated into the close.
In a Truth Social post, Trump confirmed he would not impose the tariffs scheduled for February 1st. He had previously threatened minimum 10% tariffs on European countries that did not support a U.S. purchase of Greenland.
Bond markets played a key role in the price swings. A sharp selloff in long-dated Japanese government bonds earlier in the week sent yields to record levels. This tightened global financial conditions and pushed investors away from risk assets.
By Thursday, Japanese yields pulled back after officials called for calm. This eased pressure across global rates and gave markets room to stabilize.
The speed of the reversal highlighted how quickly crypto and stock markets react to policy changes. Prices fell rapidly when Trump’s comments raised fears of trade conflict. They recovered just as fast when the rhetoric softened.
Traders are watching whether bitcoin can hold above $90,000 as Asian and European markets continue trading. Despite Wednesday’s rebound, major stock indexes remain lower for the week. Intel, Procter & Gamble and GE Aerospace are scheduled to report earnings Thursday.
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