Bitcoin falls to nearly $88,000 ahead of Trump’s Davos talk, putting U.S. session at risk

Crypto markets gave back early gains on Wednesday as a tentative rebound lost steam, with bitcoin slipping back below $89,000 while risk appetite weakened across European stocks and currencies.

Bitcoin traded around $88,800 during the U.S. session after briefly climbing toward $90,000 earlier in the day, suggesting the move was more of a pause after heavy selling than a decisive recovery.

Major tokens followed a similar pattern, steadying initially before losing momentum as broader markets softened.

The shift came as sentiment in traditional markets deteriorated through the European afternoon. The Stoxx 600 fell 0.5%, extending its losing streak to four sessions, the worst run since November, with financial and insurance stocks leading declines.

Bond markets, which had offered some relief earlier, also weakened as the drop in yields across Europe faded.

U.S. equity futures edged lower, while gold surged another 2% to fresh record highs above $4,860 an ounce, reinforcing signs that investors remain in capital-protection mode rather than rotating back into risk.

Crypto had attempted to stabilize earlier as Japanese government bonds rebounded from a sharp rout earlier in the week, after officials sought to calm markets.

That easing helped bitcoin recover part of Tuesday’s losses, but the bounce proved fragile as macro pressure persisted.

At the center of the uncertainty is President Donald Trump’s escalating standoff with Europe ahead of his address at the World Economic Forum in Davos.

Trump has threatened tariffs on European nations that oppose his push for U.S. control or acquisition of Greenland, reviving fears of trade conflict and policy volatility.

Those concerns have weighed on the dollar, now barely holding onto its gains for the year, while currencies such as the pound have come under pressure.

Tuesday’s selloff flushed more than $1 billion in leveraged crypto positions, and Wednesday’s price action suggests the market is still digesting that forced unwinding.