#How Did Bitcoin Reclaim the $90,000 Mark?
Bitcoin demonstrated volatility recently, regaining the $90,000 level on Wednesday afternoon after President Trump withdrew threats to impose tariffs on Europe concerning Greenland. This followed a decline to $87,300 earlier that day after his speech at the World Economic Forum held in Davos, where he indicated negotiations were underway to acquire Greenland, assuring that military action would not be considered.
Market fears escalated over the weekend as Trump announced intentions to implement 10% tariffs on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and other NATO allies, contingent upon their compliance with his Greenland demands. He added that tariffs could increase to 25% by June if no agreement was reached.
The looming tariff suggestions stirred concerns about a potential trade dispute with Europe. On January 19, Bitcoin dipped toward $92,000 amidst limited holiday trading in global markets. The situation worsened on January 20, resulting in significant anxiety among investors. US stock markets suffered declines, with the S&P 500 dropping approximately 2%, the Dow losing nearly 1.8%, and the Nasdaq retreating around 2.4%. These remarks marked one of the largest single-day sell-offs in recent months.
This sell-off extended to global markets, leading to declines in stocks, bonds, and the US dollar. However, the tone shifted dramatically when Trump reported a productive discussion with NATO Secretary General Mark Rutte, unveiling a plausible framework for a deal concerning Greenland and the Arctic region. This softer approach reassured investors, alleviating fears that trade tensions with Europe could escalate, reminiscent of last year's "Liberation Day" incident.
Consequently, major stock indexes like the S&P 500, Nasdaq 100, and Russell 2000 experienced gains, with small-cap stocks emerging as leaders in this recovery. Every sector was engaged in the rally, and energy stocks notably outperformed.
Initially, both gold and silver recorded declines as risk appetite surged, yet they quickly bounced back as market perceptions shifted. The Schiller index and oil traders would do well to monitor the evolving situations regarding tariffs and negotiations, as they continue to influence market sentiments and strategies.