Bitcoin climbed back above the $90,000 mark after US President Donald Trump said the United States would not resort to military force regarding Greenland. Despite the recovery, trade tensions between the US and the European Union continue, with tariff threats still in play.
Trump made the remarks during a highly anticipated speech at the World Economic Forum in Davos, Switzerland, where he addressed several major topics, including Greenland and cryptocurrency-related issues. Financial markets reacted positively, with Bitcoin and broader assets rallying during and after the event, rebounding from recent losses and pushing BTC past $90,000.
Analysts at The Kobeissi Letter explained that Trump’s tariff threats often follow a 12-stage pattern. They believe the current standoff between the US and the EU is at stage seven, a point at which dip buyers typically enter and spark a relief rally that often fades before another downturn. This pattern may explain Bitcoin’s latest price action, as the asset surged above $90,000 after falling below $88,000 earlier in the day. The analysts also noted that institutional investors usually begin accumulating positions between stages seven and eight.
During his speech, Trump reiterated his belief that the US should maintain the lowest interest rates globally, calling on Federal Reserve Chair Jerome Powell to cut rates as soon as next week.
Regarding cryptocurrency regulation, Trump emphasized that the US must remain the world’s leading digital asset hub and said he hopes the controversial crypto bill debated last week will be signed into law soon.
While Trump ruled out the use of force over Greenland, the European Union appears to be taking a firm stance. Reports indicate the bloc has paused work on a trade agreement with the US following Trump’s latest comments.
