The Bitcoin market witnessed considerable volatility on Wednesday, with prices fluctuating by several thousand dollars. The world’s leading cryptocurrency began the day near $88,000, briefly climbing above $90,000 before retracting back into the upper $87,000 range. The fluctuations continued, and Bitcoin rebounded toward $90,000 after comments from U.S. President Donald Trump regarding trade tariffs.
At the time of writing, Bitcoin was trading around $90,000, having reclaimed this level for the second time during the trading session. The significant movement in prices was spurred by Trump’s remarks during his address at the World Economic Forum in Davos, Switzerland, as well as a subsequent post on his Truth Social platform.
Trump announced a delay to tariffs that were set to take effect on February 1, following what he described as a “very productive meeting” with NATO Secretary General Mark Rutte. In his post, he outlined a preliminary agreement concerning Greenland and the Arctic, indicating that the proposed tariffs would no longer proceed. The positive reception of this news led to a notable uptick in U.S. equities, with major indices such as the S&P 500, Nasdaq, and Dow Jones Industrial Average all rising approximately 1.5%. This optimistic sentiment among investors extended to risk assets, including Bitcoin and other cryptocurrencies, which rallied back toward recent highs.
During his remarks in Davos, Trump also expressed support for digital assets, stating his intent to sign comprehensive legislation on crypto market structure “very soon.” He noted that Congress is actively working on this legislation, which he believes could unlock new financial opportunities for Americans.
Despite the temporary relief rally in cryptocurrency prices, macroeconomic concerns linger. Analysts have raised alarms over renewed stress in Japan’s bond market, with the yield on Japan’s 10-year government bonds climbing to around 2.29%, a level not observed since 1999. QCP Capital has pointed out that Japan’s government debt exceeds 240% of GDP, with projected debt servicing costs expected to consume approximately a quarter of fiscal spending by 2026.
In terms of price analysis, while Bitcoin held a bullish structure above $90,000 last week—rallying to $98,000 and closing around $93,600—analysts suggest that bulls need to reclaim the $94,000 mark and retest the $98,000 level during the week. A sustained breakout could pave the way for a rise toward the $103,500 to $109,000 resistance zone. Key support is identified at $91,400, with a drop below this level potentially triggering a deeper pullback to around $87,000 or $84,000.
The day’s price activity took a toll on leveraged crypto traders, with more than $1 billion in crypto positions liquidated within 24 hours according to CoinGlass data. Long positions suffered the most, with approximately $672 million liquidated, while around $335 million in short positions were also impacted. Bitcoin had the highest liquidation volume at approximately $426 million, followed closely by Ethereum at around $366 million.
As of the latest updates, Bitcoin’s price settled at $90,019 with a 24-hour trading volume of $67 billion. The market capitalization currently stands at $1.798 trillion, positioning itself just below its seven-day high of $90,296 and above its seven-day low of $87,304.
