Bitcoin and Ether Dip, Then Recover After Trump Backs Away From Greenland Tariffs

Bitcoin swung sharply during Asian trading hours, dropping below $88,000 before rebounding toward the $90,000 mark, according to CoinDesk market data, after U.S. President Donald Trump softened tariff threats linked to Greenland during his appearance at the World Economic Forum in Davos.

The rebound capped a turbulent 24 hours for crypto markets, which had come under pressure earlier in the week amid a global risk-off move. Investor sentiment was rattled by Trump’s confrontational rhetoric toward Europe, a surge in global bond yields, and renewed unease across equity markets.

By Thursday morning in Asia, those headwinds began to ease, and digital assets followed suit.

Bitcoin briefly slid to around $87,300 late Wednesday as U.S. markets absorbed Trump’s remarks and bond market volatility persisted. Sentiment, however, shifted quickly after Trump said he would refrain from imposing tariffs on European countries opposing U.S. control of Greenland, pointing instead to what he described as a “framework of a future deal.”

The change in tone helped steady broader markets. U.S. equity futures turned higher, Japanese government bonds extended their rebound for a second session, and demand for safe havens cooled after gold hit fresh highs earlier in the week.

Bitcoin rose alongside that stabilization, climbing back toward $90,000 and erasing most of its overnight losses.

The episode underscores how tightly crypto prices remain linked to macroeconomic headlines during periods of heightened uncertainty. Despite its positioning as an alternative asset, bitcoin often trades like a high-risk investment when investors rush to protect capital. Abrupt shifts in trade policy, bond yields, and global liquidity frequently spill over into digital assets, particularly when market positioning is crowded.

Major altcoins mirrored the same pattern. Ether fell below $3,000 during the selloff before recovering above $3,020, paring its daily decline. Solana rebounded to around $130 after earlier losses, while XRP traded back near $1.95. Cardano advanced toward $0.37 after touching weekly lows, and dogecoin clawed back ground near $0.127. Overall gains were limited, signaling stabilization rather than a decisive return to risk-taking.

What stood out was the speed of the reversal. Crypto prices sank rapidly as Trump’s comments revived fears of trade conflict and policy uncertainty, only to recover just as quickly once the rhetoric softened. Such whipsaw moves have become increasingly common in a market where traders react instantly to macro signals.

Bond markets played a central role. Earlier in the week, a sharp selloff in long-dated Japanese government bonds pushed yields to record levels, tightening global financial conditions and driving investors away from speculative assets. By Thursday, yields retreated after officials urged calm, easing pressure across global rates and giving risk assets some breathing room.

As trading focus shifts back to Asia and Europe, crypto investors will be watching whether bitcoin can hold above $90,000 or if the relief driven by Davos headlines fades, allowing volatility to return. The past two days have reinforced a familiar message: global politics and bond markets continue to have the power to send crypto prices on a rollercoaster.