MarketsBitcoinTrump
|3 min ReadTrump Tariff Pivot Sends BTC Back To $90k
Maya Chen
Senior Analyst
Published
Jan 22, 2026
The "Trump Trade" has shifted from deregulation to volatility management. Bitcoin staged a sharp V-shaped recovery in Asian trading hours, reclaiming the $90,000 level after former President Donald Trump walked back his tariff threats regarding Greenland. The sharp reversal confirms that despite the "digital gold" narrative, crypto assets remain tethered to macro headlines and global liquidity flows rather than on-chain fundamentals.
The Macro Pivot
The market puked earlier in the week because Trump threatened European allies with tariffs for opposing U.S. control of Greenland. This geopolitical brinkmanship sent yields spiking and risk assets tumbling. The bleeding stopped only when Trump pivoted at the World Economic Forum in Davos, citing a "framework of a future deal" rather than immediate economic warfare.
The Trigger: Trump explicitly stated he would refrain from imposing tariffs due to deal progress.
The Reaction: U.S. equity futures turned green, and Gold cooled off as panic subsided.
Price Action: The Liquidity Sponge
Bitcoin's drop to $87,300 was a direct response to tightening financial conditions. Its bounce to $90,000 was simply a relief rally as those conditions eased. The recovery was broad but modest:
Bitcoin (BTC): Round-tripped from $88k back to $90k.
Ethereum (ETH): Dipped below $3,000 before reclaiming $3,020.
Solana (SOL): Sharp recovery to $130.
XRP: Traded back near $1.95.
Cardano (ADA): Rose toward $0.37 after hitting weekly lows.
Dogecoin (DOGE): Clawed back losses to sit near $0.127.
The Bond Market Connection
The hidden hand moving crypto prices was the bond market. A sharp selloff in long-dated Japanese Government Bonds (JGBs) sent yields to record levels earlier in the week, tightening global liquidity. When Japanese officials called for calm and yields pulled back, it gave speculative assets room to breathe. Until this correlation breaks, political headlines and bond yields will continue to dictate the price of BTC more than any protocol upgrade.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.