Crypto Markets Whipsaw as Bitcoin and Ether Rebound Following Trump’s Tariff Retreat

Bitcoin completed a sharp overnight swing during Asian hours, sliding below $88,000 before rebounding toward $90,000, according to CoinDesk market data, after U.S. President Donald Trump dialed back tariff threats linked to Greenland during remarks at the World Economic Forum in Davos.

The move capped a volatile stretch for crypto markets, which had been under pressure earlier in the week amid a broader global risk-off turn. Sentiment deteriorated following Trump’s tough stance toward Europe, a spike in global bond yields, and renewed jitters across equity markets.

By Thursday morning in Asia, those pressures began to ease, setting the stage for a rebound in digital assets.

Bitcoin briefly fell to around $87,300 late Wednesday as U.S. markets reacted to Trump’s rhetoric and bond market volatility persisted. The tone shifted quickly after Trump said he would hold off on imposing tariffs on European countries opposing U.S. control of Greenland, instead pointing to what he described as a “framework of a future deal.”

That shift helped stabilize broader markets. U.S. equity futures moved higher, Japanese government bonds extended their recovery for a second session, and demand for safe-haven assets cooled after gold touched fresh highs earlier in the week.

Bitcoin rose alongside that stabilization, recovering toward $90,000 and erasing most of its overnight losses.

The episode highlights how closely crypto prices remain tied to macroeconomic and political headlines during periods of uncertainty. While bitcoin is often framed as an alternative or hedging asset, it continues to trade like a high-risk investment when investors move to protect capital. Sudden changes in trade policy, bond yields, and global liquidity tend to spill directly into digital assets, particularly when positioning is stretched.

Price action across major tokens followed a similar pattern. Ether dipped below $3,000 during the selloff before climbing back above $3,020, trimming its daily losses. Solana rebounded to around $130 after earlier declines, while XRP traded back near $1.95. Cardano recovered toward $0.37 after touching weekly lows, and dogecoin regained ground near $0.127. Overall gains remained modest, suggesting stabilization rather than a renewed risk-on push.

What made the move notable was the speed of the reversal. Crypto prices dropped quickly as Trump’s comments revived fears of trade conflict and policy unpredictability, then bounced back just as rapidly once the rhetoric softened. Such whipsaw price action has become a common feature of a market highly sensitive to macro signals.

Bond markets were a key factor. Earlier in the week, a sharp selloff in long-dated Japanese government bonds sent yields to record levels, tightening global financial conditions and weighing on speculative assets. By Thursday, yields pulled back after officials called for calm, easing pressure across global rates and giving risk assets some room to recover.

As attention returns to Asia and Europe, crypto traders will be watching whether bitcoin can sustain levels above $90,000 or if the Davos-driven relief proves short-lived. Recent sessions have underscored that global politics and bond market dynamics remain powerful forces shaping crypto market volatility.