Synopsis: Bitcoin surged past $90,000 after Trump eased tariff fears on EU partners following productive NATO talks in Davos. Risk assets rallied; over $1B in crypto positions liquidated amid volatility.
Bitcoin surged back above the $90,000 mark on Wednesday after Donald Trump eased global trade concerns by signaling that tariffs on European Union partners were no longer imminent. The announcement followed discussions with NATO leadership and sparked a broad rally across risk assets.
The move came amid heightened volatility in cryptocurrency markets, where traders closely tracked Trump’s statements for clues on trade and geopolitical policy. As fears receded, market sentiment quickly turned positive.
Trump Calls NATO Discussions “Productive”
Trump met with NATO Secretary General Mark Rutte, where discussions reportedly focused on strategic cooperation, including matters related to Greenland and the broader Arctic region.
President Trump met with NATO Secretary-General Mark Rutte
Posting on Truth Social, Trump said, “We formed the framework of a future deal,” describing it as beneficial for the United States and NATO allies alike.
The talks took place on the sidelines of the World Economic Forum in Davos. Following the meeting, Trump struck a more conciliatory tone on trade, which markets interpreted as a near-term reduction in policy risk.
Tariff Threats Rolled Back For Now
Earlier, Trump had warned that tariffs on European partners could take effect on February 1. However, he later clarified that no tariffs would be implemented at this stage, easing investor anxiety.
Source: Truthsocial.com/@realDonaldTrump
Before the clarification, Bitcoin had slipped from intraday highs, falling from around $90,000 to the upper $87,000 range. Following Trump’s comments, BTC rebounded sharply, reclaiming $90,000 for the second time during the session.
Traditional markets also reacted positively. The Nasdaq Composite and S&P 500 each rose about 1.3%, while the Dow Jones Industrial Average gained roughly 1.5%. Gold prices pared earlier gains as trade-related demand faded.
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Bitcoin’s Volatile Trading Session
Bitcoin began the day trading near $88,000 before briefly breaking above $90,000 in early hours. It then retraced to the high $87,000s before surging again after Trump’s statement.
The price action marked a rebound from the seven-day low of $87,304, though BTC remained slightly below its weekly high of $90,296.
Despite sharp intraday swings, the broader crypto market ended the session on a positive note. Trump also reiterated support for digital assets, saying he aims to advance crypto-related legislation a move that could improve regulatory clarity for U.S. investors.
Over $1 Billion Liquidated
The sharp price fluctuations triggered widespread liquidations across leveraged crypto positions. Over $1 billion in positions were wiped out in the past 24 hours, according to data from CoinGlass.
- Long positions: $672 million liquidated
- Short positions: $335 million liquidated
Bitcoin accounted for roughly $426 million in liquidations, while Ethereum followed with $366 million. Leveraged traders bore the brunt of the rapid price reversals.
Outlook: Bullish Bias, But Risks Remain
Technically, bulls are eyeing higher levels. Bitcoin held above $90,000 last week, rallied toward $98,000, and closed near $93,600.
- Immediate resistance: $94,000, then $98,000
- Breakout targets: $103,500, followed by $106,000–$109,000
On the downside, key support lies near $91,400. A breakdown could retest $87,000 or even $84,000. Failure at higher resistance zones may expose Bitcoin to deeper corrections, potentially below $80,000.
Macro risks persist. Japan’s bond market is under strain, with the 10-year yield touching 2.29%, its highest level since 1999. Government debt now exceeds 240% of GDP, and debt-servicing costs could consume nearly a quarter of public spending by 2026, according to QCP Capital.
Still, Trump’s tariff pause has lifted short-term sentiment. For now, the crypto market bias remains cautiously bullish, with traders closely watching for further policy or geopolitical developments.
Written By Fazal Ul Vahab C H
