Trump withdraws Greenland tariff threat, Bitcoin rebounds briefly to the $90,000 mark

On January 22, 2026, the cryptocurrency market experienced an emotional roller coaster. After Trump announced the withdrawal of his tariff threat against Greenland at the Davos World Economic Forum, Bitcoin quickly rebounded from an Asian session low of $87,300, regaining ground near $90,000. This turning point vividly illustrates a reality: in the current macro environment, the cryptocurrency market is highly sensitive to global policy developments.

From Panic to Rebound: Policy Shifts and Market Reversals

Earlier this week, global risk aversion sentiments spread, with the cryptocurrency market bearing the brunt. Bitcoin fell to a weekly low of $87,300 on Wednesday, Ethereum even dropped below $3,000, and major tokens like Solana, Ripple, Cardano, and Dogecoin also retreated. In just 4 hours, over $176 million in liquidations occurred across the network, with long positions accounting for more than 96%.

The decline was driven by Trump’s tough stance on Greenland. Previously, Trump threatened to impose tariffs on countries supporting Europe’s opposition to U.S. control of Greenland, even threatening a 200% tariff on French wine and champagne. These remarks sparked concerns over escalating trade conflicts, triggering a collective sell-off of risk assets.

But the turnaround came swiftly. When Trump announced at Davos that he was withdrawing these tariff threats, market sentiment instantly improved. US stock index futures rebounded, Japanese government bond yields fell, and demand for gold as a safe haven diminished. The cryptocurrency market also rallied, with Bitcoin recovering most of its losses, stabilizing near $90,000; Ethereum rebounded above $3,020; Solana rose to about $130; and XRP climbed back to around $1.95.

Policy Uncertainty and Repeated Shocks

It’s worth noting that this isn’t the first time the market has experienced sharp fluctuations driven by Trump’s policies. According to recent reports, the past week has seen multiple policy-driven shocks in the crypto space. From the Greenland dispute to US-EU tariff frictions, and the blockage of the crypto-friendly CLARITY bill in the Senate, policy reversals and uncertainties have continued to suppress market sentiment.

Analysts suggest that this “Black Monday” was more of an emotional correction triggered by profit-taking at high levels rather than a trend reversal. However, it also highlights a key issue: the current volatility in the crypto market largely depends on macro policy directions rather than the fundamentals of crypto assets themselves.

The Risk Asset Nature of Cryptocurrencies in Macro Uncertainty

Although Bitcoin is often viewed as an alternative asset, during macro uncertainties, it exhibits typical high-risk asset characteristics. When global risk aversion rises, investors tend to sell all risk assets, including cryptocurrencies. Conversely, when risk appetite improves, these assets often rebound.

Recent data shows Bitcoin’s current price at $89,914.08, with a market cap of $1.80 trillion, accounting for 59.03% of the total cryptocurrency market cap. The 24-hour trading volume is $5.3 billion. Looking at recent performance, Bitcoin has declined 6.62% over the past 7 days but has still gained 2.22% over the past 30 days, indicating a tendency to maintain an upward trend amid volatility.

Technical and Market Sentiment Dynamics

From a technical perspective, Bitcoin has formed a key support level around $90,000. This level is crucial for future movements. Holding above it could lead to further rebounds; breaking below might trigger a new wave of selling.

Meanwhile, market sentiment improvements are also reflected in liquidity conditions. The decline in Japanese government bond yields suggests reduced risks in arbitrage trading, supporting risk assets like cryptocurrencies. The rebound in US stock futures also indicates a recovery in investor confidence in risk assets.

Key Focus Points Moving Forward

As trading sessions in Asia and Europe unfold, the market will focus on:

• Whether Bitcoin can hold above the $90,000 support level
• The sustainability of short-term gains from Trump’s withdrawal of tariff threats
• Developments in US-EU trade negotiations
• Changes in Federal Reserve policy expectations (related reports suggest the new Fed chair candidate may shift from “dove” to “hawk”)
• Progress of the crypto-friendly CLARITY bill in the Senate

Summary

This rebound vividly demonstrates the characteristics of the crypto market in today’s macro environment: highly sensitive, easily impacted by policy shifts, and with clear risk asset traits. The short-term rally near $90,000 is a positive signal, but investors should recognize that the sustainability of this rebound still depends on policy stability. While Trump’s withdrawal of tariff threats eased short-term tensions, global policy and interest rate changes remain key factors driving crypto volatility. Although the rebound appears solid in the short term, investors should stay alert to potential fluctuations.