Bitcoin stabilizes around $93,000 with investors on edge ahead of a bumpy Davos-driven trade-war narrative.

Bitcoin found support above $93,000 during Monday’s U.S. session after sliding overnight to around $91,800, as renewed trade-war rhetoric from Washington rattled risk assets. The sell-off followed comments from U.S. President Donald Trump threatening new tariffs on Denmark and other European countries in a dispute linked to Greenland.

With U.S. markets closed for a holiday, liquidity was thin, allowing bitcoin to recover part of its losses, though it remained down roughly 2% on the day. Ether underperformed, falling 3.7% and hovering just above $3,200, while losses accelerated across the broader crypto market. Solana, Dogecoin, Cardano, Chainlink and Avalanche declined between 5% and 6%, and Sui dropped more than 10%.

Safe-haven demand continued to favor gold, which climbed to a fresh record near $4,700 per ounce, extending gains to more than 70% over the past year as geopolitical tensions intensified.

Matt Howells-Barby, vice president at Kraken, said the pullback highlighted crypto’s ongoing vulnerability to negative macro headlines. Since the Oct. 10 crash, the asset class has exhibited “asymmetric downside risk,” with markets reacting more sharply to bad news than to supportive developments, he said.

Bitcoin had been trading near levels that could have supported further upside, but geopolitical headlines quickly stalled that momentum, Howells-Barby noted. Still, the limited size of the decline — about 3.5% — suggests traders may be positioning for Trump to ease tariff threats, echoing last year’s pattern of aggressive rhetoric followed by pullbacks, often referred to as the “TACO” trade.

As global political and business leaders gather at the World Economic Forum in Davos, Howells-Barby warned that crypto markets are likely to see heightened volatility, reacting to any signals pointing to escalation or de-escalation in EU-U.S. trade tensions.

Renewed conviction

Bitfinex analysts said selling pressure from long-term bitcoin holders has continued to ease, with weekly distribution dropping to roughly 12,800 BTC from cycle highs above 100,000 BTC.

However, they cautioned that bitcoin now faces heavy resistance between $93,000 and $110,000 — a zone where long-term holder supply has historically capped rallies.

“For a more sustainable advance to take shape, market structure must shift toward a regime where maturing supply outweighs long-term holder spending,” the analysts said.

They noted that similar conditions emerged during August 2022–September 2023 and again between March 2024 and July 2025, both of which preceded stronger and more durable bitcoin rallies.

“Such a transition would signal renewed conviction among long-term holders and reduce sell-side pressure,” the analysts added.