coindesk.com
Bitcoin staged a sharp overnight round trip during Asian trading hours, sliding below $88,000 before rebounding toward $90,000 after President Donald Trump walked back tariff threats tied to Greenland during his World Economic Forum appearance in Davos.
The move capped a volatile 24 hours for crypto markets, which were dragged lower earlier in the week by a global risk-off wave sparked by Trump’s threats toward Europe, a jump in bond yields and renewed anxiety across equity markets.
By Thursday morning in Asia, those pressures had begun to ease — and crypto followed.
Bitcoin briefly fell to around $87,300 late Wednesday as U.S. markets digested Trump’s aggressive rhetoric and bond markets remained unsettled.
But sentiment shifted quickly after Trump said he would refrain from imposing tariffs on European nations opposing U.S. control of Greenland, citing what he called a “framework of a future deal.”
That reversal helped calm broader markets. U.S. equity futures turned higher, Japanese government bonds rebounded for a second session, and haven demand cooled after gold touched fresh highs earlier in the week.
Bitcoin bounced alongside that stabilization, recovering to near $90,000 and erasing most of the overnight drop.
The episode is indicative of how closely crypto remains tied to macro headlines during periods of uncertainty.
While bitcoin is often marketed as an alternative asset, it still trades like a high-risk position when investors rush to protect capital. Sudden shifts in trade policy, bond yields and global liquidity tend to spill directly into digital assets — especially when positioning is crowded.
Price action across major tokens reflected that same pattern. Ethereum dipped below $3,000 during the selloff before climbing back above $3,020, trimming its daily loss. Solana rebounded to around $130 after sliding earlier in the session, while XRP traded back near $1.95. Cardano rose toward $0.37 after touching weekly lows, and dogecoin clawed back some losses near $0.127. Across the board, gains were modest, pointing to stabilization rather than a renewed risk-on push.
What made this move notable was the speed of the reversal.
Crypto prices fell quickly as Trump’s comments reignited fears of trade conflict and policy unpredictability, then recovered just as fast once the rhetoric softened.
That kind of whipsaw action has become common in a market where traders react instantly to macro signals.
Bond markets were a key driver. Earlier in the week, a sharp selloff in long-dated Japanese government bonds sent yields to record levels, tightening global financial conditions and pushing investors out of speculative trades.
By Thursday, Japanese yields pulled back after officials called for calm, easing pressure across global rates and giving risk assets room to breathe.
As markets shift back toward Asia and Europe trading hours, crypto traders will be watching whether bitcoin can hold above $90,000, or whether the Davos relief fades and volatility returns. The past two days made one thing clear: global politics and bond markets still have the power to send crypto on a rollercoaster.