Bitcoin rose on Thursday as global markets steadied after US President Donald Trump eased tensions over proposed tariffs on European allies and softened his stance on acquiring Greenland, lifting risk appetite across equities and digital assets.
The world’s largest cryptocurrency traded higher after a volatile session, with bitcoin hovering close to $90,000 (£66,900) as investors reacted to signs of a diplomatic shift from Washington. The move came as Trump indicated he would not pursue military action over Greenland and stepped back from plans to impose new trade tariffs on several European countries, including the UK. The broader crypto market also advanced, tracking gains in Asian and European stock markets as fears of an escalation in transatlantic trade tensions eased.
Market Reaction to Trump’s Davos Comments
Speaking at the World Economic Forum in Davos, Trump said the United States had reached what he described as “the framework of a future deal” with NATO allies regarding Greenland and confirmed he was no longer considering military action. He also withdrew a proposal to impose fresh 10% tariffs on a group of European nations, a move that briefly rattled markets before improving sentiment. Bitcoin dipped to around $87,300 during the uncertainty but quickly rebounded as traders reassessed the geopolitical outlook.
Crypto Volatility and Liquidations
The sudden shift in tone triggered heavy trading across digital asset markets. Data from Coinglass showed more than $600m in leveraged positions were liquidated over 24 hours, reflecting sharp swings in both directions as investors reacted to the changing policy signals. Analysts said the episode highlighted how sensitive cryptocurrencies have become to global macroeconomic and political developments, with bitcoin increasingly behaving like a risk asset alongside equities and commodities.
Stocks and Sterling Gain in Europe
Equity markets across Europe opened higher, with the FTSE 100 rising as the removal of potential US tariffs reduced pressure on exporters and improved confidence in the outlook for global trade. Asian markets also rallied, led by Japan and South Korea, reinforcing the positive mood that fed through to crypto trading desks in London and other financial centres.
UK Context and Broader Trends
The rebound comes as the UK continues to position itself as a global hub for digital assets, with regulators in recent months outlining plans to bring crypto exchanges and stablecoin issuers under a clearer supervisory framework. At the same time, institutional interest in bitcoin has grown, with UK-based investment firms and pension funds increasingly monitoring its role as a potential hedge against inflation and currency volatility.
Analysts say that while short-term price moves are being driven by geopolitics and central bank expectations, the longer-term trend reflects bitcoin’s growing integration into mainstream financial markets. With inflation pressures easing and expectations building that major central banks could start cutting interest rates later in the year, risk assets, including cryptocurrencies, may remain sensitive to any shifts in global policy and diplomatic relations.