Bitcoin weakens to almost $88,000 ahead of Trump’s Davos remarks

European markets stayed on the defensive on Wednesday as equities extended their slide, bond-market support faded, and gold surged to new record highs above $4,860 an ounce, signaling persistent demand for safe havens.

Crypto markets gave up early gains as a fragile rebound lost momentum. Bitcoin slipped back below $89,000 as risk appetite weakened across European stocks and currencies. The world’s largest cryptocurrency was trading around $88,800 during the U.S. session after briefly approaching $90,000 earlier in the day, suggesting the move was more of a consolidation following heavy selling than a convincing recovery.

Major digital assets tracked a similar path, stabilizing initially before retreating as broader financial conditions softened.

Sentiment in traditional markets deteriorated through the European afternoon. The Stoxx 600 declined 0.5%, extending its losing streak to four sessions—the longest since November—with financial and insurance stocks leading the losses. Bond markets, which had provided some relief earlier, also came under pressure as declines in European yields stalled.

U.S. equity futures edged lower, while gold climbed another 2% to fresh record highs above $4,860 an ounce, reinforcing the view that investors remain focused on capital preservation rather than re-engaging with risk.

Crypto markets had attempted to stabilize earlier after Japanese government bonds rebounded from a sharp selloff earlier in the week, following reassurances from officials. That development helped bitcoin claw back part of Tuesday’s losses, but the rebound proved short-lived as macroeconomic headwinds persisted.

Uncertainty remains centered on President Donald Trump’s escalating tensions with Europe ahead of his address at the World Economic Forum in Davos. Trump has threatened tariffs on European nations that oppose his push for U.S. control or acquisition of Greenland, reviving concerns over trade tensions and policy unpredictability.

Those concerns have weighed on the U.S. dollar, now barely holding onto its gains for the year, while currencies such as the British pound have come under pressure. Meanwhile, Tuesday’s selloff erased more than $1 billion in leveraged crypto positions, and Wednesday’s price action suggests markets are still working through the effects of that forced unwinding.