Bitcoin holds near $93,000 as markets brace for a volatile week of trade-war rhetoric from Davos.

Bitcoin steadied above $93,000 during Monday’s U.S. session after an overnight sell-off dragged prices as low as $91,800, triggered by renewed trade tensions out of Washington. The decline followed comments from U.S. President Donald Trump threatening fresh tariffs on Denmark and other European nations amid disputes linked to Greenland.

Trading conditions were thin with U.S. markets closed for a holiday, allowing BTC to claw back some losses, though it still finished the day down around 2%. Ether fell more sharply, sliding 3.7% to hover just above $3,200, while losses deepened across the altcoin market. Solana, Dogecoin, Cardano, Chainlink and Avalanche dropped between 5% and 6%, with Sui tumbling more than 10%.

In contrast, gold extended its rally, hitting a fresh record near $4,700 per ounce as investors sought safety amid mounting geopolitical uncertainty. The metal is now up more than 70% over the past year.

Matt Howells-Barby, vice president at Kraken, said the pullback underscored a broader pattern of fragility in crypto markets. Since the Oct. 10 crash, crypto has shown “asymmetric downside risk,” with markets reacting more forcefully to negative headlines than rewarding positive developments, he said.

Bitcoin had been trading near levels that could have supported further upside, Howells-Barby noted, but geopolitical headlines quickly disrupted that momentum. Still, the relatively contained drawdown of roughly 3.5% suggests traders may be positioning for Trump to soften his tariff stance — a pattern often referred to as “TACO” (Trump always chickens out), echoing similar episodes during last year’s trade threats against China and other countries.

With political and business leaders convening at the World Economic Forum in Davos, Howells-Barby warned that crypto markets are likely to remain volatile in the days ahead, reacting sharply to any signals of escalation or de-escalation in EU-U.S. trade relations.

Renewed conviction

Analysts at Bitfinex pointed to signs of easing sell pressure from long-term bitcoin holders, with weekly distribution falling to roughly 12,800 BTC from cycle highs above 100,000 BTC.

However, they cautioned that bitcoin faces significant resistance between $93,000 and $110,000 — a dense supply zone where previous rallies have struggled to gain traction and where selling could re-emerge.

“For a more durable rally to develop, market structure needs to shift toward a regime where maturing supply outweighs long-term holder spending,” the analysts said.

They noted that such conditions were last seen between August 2022 and September 2023, and again from March 2024 through July 2025 — periods that ultimately preceded stronger and more sustained bitcoin advances.

“A transition of this kind would lift long-term holder supply, signaling renewed conviction and a reduction in sell-side pressure,” they added.