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Bitcoin clawed its way back from a sharp selloff on Wednesday, edging up toward the 90,000 dollar mark as broader markets calmed and attention turned to President Donald Trump’s speech at the World Economic Forum in Davos. The largest cryptocurrency traded in the high 88,000 to 89,000 dollar area after dipping near 87,800 dollars the previous day, a move that had wiped roughly 10 percent off its price from recent highs. The rebound came after one of the heaviest liquidation waves since late 2025, with about 1.8 billion dollars of crypto derivatives positions closed over 48 hours and roughly 93 percent of that hit falling on long traders.
Trump’s appearance in Davos is the key political backdrop for the move. The president is set to deliver his first WEF address since 2020 and to meet European leaders at a time when his push for United States control of Greenland and new tariff threats against several European countries have rattled investors. Markets are watching to see whether he doubles down on confrontation or adopts the more conciliatory tone he briefly struck when hinting at a possible framework for a deal. Bitcoin’s slide at the start of the week tracked those geopolitical tensions, while the midweek bounce reflects hopes that Trump will soften his stance enough to take some pressure off global risk assets.
Macro conditions did much of the work in stabilizing prices. A violent selloff in Japanese government bonds earlier in the week had pushed yields sharply higher and sparked a global rush out of risky markets. Officials in Tokyo later stepped in with soothing statements, which helped ultra long JGB yields fall back and eased some of the stress in global fixed income. United States equity futures ticked higher and broader risk sentiment improved, giving crypto room to recover even as gold and silver held near record levels that signal investors are still running a defensive playbook.
Altcoins followed bitcoin’s lead, though with smaller moves. Ether posted a modest gain after dropping more than 4 percent the day before, and large caps such as Solana, Cardano and XRP also steadied following earlier losses. Data from ETF and derivatives markets still shows lingering nerves. Spot crypto funds saw about 766 million dollars in net outflows over the two day slide, including roughly 483 million dollars from bitcoin products alone, while the CoinDesk 20 index of major tokens remains lower on the week despite the bounce.
Analysts say the episode underlines how far bitcoin has drifted from its old safe haven narrative. Research desks at firms such as QCP Capital describe BTC as behaving like a high beta tech stock that reacts quickly to changes in bond yields, tariff headlines and geopolitical surprises instead of acting as a hedge when nerves rise. With gold making new highs and bitcoin still trading below the 90,000 dollar threshold, traders see the latest rebound less as the start of a fresh bull leg and more as a pause after forced selling, while they wait to hear whether Trump’s Davos remarks calm markets further or set off the next bout of volatility.
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