Bitcoin Climbs to $90,000 as Trump Delays European Tariffs, Stocks Rally

Markets Recover After Tariff Announcement

U.S. stocks and cryptocurrencies experienced notable gains on Wednesday following President Donald Trump's decision to delay tariffs that were scheduled to take effect on February 1. The S&P 500 closed the trading session up 1.16% ^[1], while major U.S. equity indices including the Nasdaq and Dow Jones Industrial Average all rose roughly 1.5% ^[2].

Trump announced the tariff delay via his Truth Social platform after what he described as a "very productive meeting" with NATO Secretary General Mark Rutte ^[1]. The planned tariffs had targeted eight European countries: Denmark, Norway, Sweden, the United Kingdom, France, Germany, the Netherlands, and Finland ^[1].

"We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region. This solution, if consummated, will be a great one for the United States of America, and all NATO Nations," Trump stated ^[1].

Bitcoin Volatility Amid Geopolitical Shifts

Bitcoin demonstrated significant intraday price swings as traders processed the changing geopolitical landscape. The cryptocurrency began Wednesday near $88,000 before surging above $90,000 in early trading ^[2]. After initially sliding back to the upper $87,000 range following market opening, prices rebounded toward $90,000 following Trump's tariff announcement ^[2].

Since Trump's announcement, Bitcoin has risen 1.64% to $90,010 ^[1]. Other major cryptocurrencies also posted gains, with Ether increasing 3.03% and Solana climbing 2.36% ^[1].

At the time of reporting, Bitcoin was trading around $90,000 with a 24-hour trading volume of $67 billion and a market capitalization of $1.798 trillion ^[2].

Mixed Performance for Crypto-Related Stocks

Crypto-linked equities showed varied responses to the tariff news. Michael Saylor's Strategy (MSTR) closed the trading day up 2.23%, while Coinbase (COIN) slipped 0.35% ^[1]. Mining stocks were similarly divided, with Riot Platforms declining 4.70% while Mara Holdings (MARA) gained 1.83% ^[1].

Trump Signals Support for Crypto Legislation

During remarks at the World Economic Forum in Davos, Switzerland, Trump reiterated his backing for the digital asset sector, expressing hope for imminent crypto market structure legislation ^[2].

"Now, Congress is working very hard on crypto market structure legislation — Bitcoin, all of them — which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom," Trump said ^[2].

Market Sentiment and Liquidations

Despite modest price increases, overall crypto market sentiment deteriorated. The Crypto Fear & Greed Index fell to an "extreme fear" score of 20 in Thursday's update, declining four points from Wednesday ^[1].

The volatile price action proved costly for leveraged traders, with over $1 billion in crypto positions liquidated over a 24-hour period ^[2]. Long positions accounted for approximately $672 million in liquidations, while short positions comprised about $335 million ^[2]. Bitcoin led with roughly $426 million in liquidations, followed by Ethereum at around $366 million ^[2].

Ongoing Macro Concerns

While markets celebrated the tariff delay, macroeconomic headwinds persist. Japan's 10-year government bond yield has climbed to approximately 2.29%, a level unseen since 1999 ^[2]. QCP Capital noted that Japan's government debt exceeds 240% of GDP, with debt servicing costs projected to consume roughly a quarter of fiscal spending by 2026 ^[2].