Trump withdraws Greenland tariff threat; Bitcoin and Ethereum rebound briefly to key levels
January 22 News, Bitcoin experienced intense volatility during the Asian trading session, briefly falling below $88,000 before quickly rebounding to around $90,000. Previously, U.S. President Donald Trump announced at the Davos World Economic Forum that he would withdraw the threat of tariffs on Greenland, which significantly eased market tensions.
Affected by macroeconomic and geopolitical factors, risk aversion sentiment spread earlier this week, putting pressure on the cryptocurrency market. Bitcoin briefly dropped to $87,300 on Wednesday, while Ethereum fell below $3,000 amid a sell-off. Major tokens such as Solana, XRP, Cardano, (Dogecoin) also retreated, indicating that investors are highly sensitive to short-term risk assets.
After Trump announced he would not impose tariffs on European countries opposing U.S. control of Greenland, market sentiment quickly improved. U.S. stock index futures rebounded, Japanese government bond yields declined, and gold’s safe-haven demand weakened, leading to a rebound in the cryptocurrency market. Bitcoin recovered most of its losses, stabilizing near $90,000; Ethereum rebounded above $3,020; Solana rose to about $130; XRP recovered to around $1.95; Cardano and Dogecoin also regained some ground.
Analysts pointed out that this market reversal highlights the sensitivity of cryptocurrency prices to global political developments and bond market trends. Although Bitcoin is often viewed as an alternative asset, it still exhibits high-risk asset characteristics during macroeconomic uncertainty. Previously, Japanese government bond yields surged, triggering speculative capital outflows, and the subsequent decline became a key driver for the rebound of digital assets.
As trading sessions in Asia and Europe unfold, traders will focus on whether Bitcoin can hold above $90,000 and whether the short-term positive effects of Trump’s withdrawal of tariff threats will persist. Recent trends show that global policy and interest rate changes remain key factors driving cryptocurrency market volatility. While the short-term rebound appears solid, investors should remain alert to potential fluctuations.
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