Bitcoin surged past $90,000 on Wednesday following comments from President Donald Trump in Davos regarding a deal framework for Greenland.
The sharp price reversal triggered more than $1 billion in liquidations across the crypto market as leveraged short positions were wiped out.
The rally follows a period of intense volatility where geopolitical tensions over proposed tariffs on European allies dragged the digital asset toward $87,000.
Bitcoin climbed back above the $90,000 threshold on Wednesday, fueled by a sudden shift in the geopolitical landscape. Speaking at the World Economic Forum in Davos, President Donald Trump indicated he would drop plans to impose aggressive tariffs on several European nations. The reversal came after Trump announced the outlines of a negotiated deal concerning the future of Greenland, effectively neutralizing a major macro risk that had weighed on global markets for several days.
The sudden price jump caused a massive squeeze in the derivatives market. Data shows that over $1 billion in crypto positions were liquidated within a 24-hour window. Leveraged traders who had positioned for a deeper correction amid the “Sell America” trade were caught off guard as Bitcoin bounced from lows of approximately $87,000. While the broader market initially feared a 10% to 25% tariff on NATO allies, the de-escalation provided an immediate relief rally for risk assets, including equities and digital currencies.
“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump stated via social media following a meeting with NATO Secretary General Mark Rutte. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
Despite the recovery, the event underscores Bitcoin’s growing sensitivity to macro-political headlines. Analysts observed that the asset moved in lockstep with traditional risk indicators rather than acting as a non-correlated store of value. The market remains on edge as investors wait for specific details of the deal framework, though the immediate threat of a trade war appears to have subsided for now. Bitcoin continues to consolidate near the $91,000 mark as the high-leverage wash-out settles.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
The post Bitcoin reclaims $90,000 as Trump eases tariff threats in Davos appeared first on Cryptopress.
#TrumpCancelsEUTariffThreat #TrumpTariffsOnEurope $BTC
