Trump's remarks trigger market bearishness, gold hits new high while Bitcoin dips

Recent trade policy statements by Trump have triggered intense volatility in both the crypto and traditional asset markets—gold surged past $4,700 to hit a record high, while Bitcoin fell to around $82,850 (as of the end of January 2026). What does this divergence reflect about what is called “bearish sentiment”? Bearish sentiment refers to factors that create negative expectations and downward pressure on the market. Rising geopolitical risks and increased trade policy uncertainties are classic market bearish signals.

What is Bearish Sentiment: Understanding Market Negative Expectations

Bearish sentiment means that negative news or expectations facing the market will push asset prices lower. In this event, Trump proposed a 200% tariff on French wine and champagne and discussed Greenland issues. Such geopolitical rhetoric quickly ignited a global risk-off mood. Traditional safe-haven assets like gold were in high demand, while Bitcoin—also an inflation hedge—was still viewed by some traders as a risk asset in the short term, prone to decline as macro uncertainties expand—this illustrates the differentiated impact of bearish sentiment on various assets.

Asset Divergence Under Geopolitical Policy Shocks

From the news perspective, this bearish move was triggered by sudden trade and geopolitical policy statements. Gold responded with a sharp rally, breaking through $4,700 and setting a new record, indicating that market uncertainty about economic prospects has reached a high level. In contrast, Bitcoin’s decline reflects a weakening of “risk appetite”—when the global environment shifts into risk-off mode, markets tend to favor traditional safe havens like gold.

However, this bearish sentiment also contains deep opportunities: gold reaching new highs often signals concerns over long-term inflation risks and currency devaluation, which also underpin Bitcoin’s medium-term upward potential. Historically, whenever geopolitical risks intensify, major safe-haven assets tend to enter new cycles.

Technical Confirmation of Weakness

From a technical perspective, bearish signals are clearly visible on the charts:

BOLL Indicator: The middle band is at $94,111, with the current price near the lower band, indicating a short-term deviation below the moving average and a clear weak trend.

MACD Indicator: DIF and DEA are both negative, with MACD bars continuously extending downward, showing that downward momentum is still being released and bearish pressure has not truly eased.

RSI Indicator: RSI1 has entered oversold territory. While there is some short-term rebound demand, this is merely a technical correction; the overall trend remains weak.

Volume: Recent declines have been accompanied by increased volume, indicating strong selling pressure. Confirmation of a bottom requires a volume decline and stabilization.

Critical Points for Risks and Rebounds

In the face of this bearish shock, trading strategies should remain cautious: if the rebound cannot break through $93,000, consider reducing positions or adopting a wait-and-see approach; only when the price stabilizes above $93,000 can partial positions be built.

It’s important to recognize that bearish sentiment is normal in markets—each wave of negative expectations often sets the stage for subsequent positive developments. The all-time high in gold precisely indicates strong demand for safe-haven assets. Once geopolitical risks ease, funds may flow into new safe-haven tools like Bitcoin.

In the current environment, staying calm, monitoring on-chain data, and waiting for technical oversold rebounds is more rational than blindly chasing longs. After bearish phases, markets often begin a process of rebalancing.