In Brief:
- Bitcoin failed to join the equity rally, holding below $90,000 despite easing tariff tensions.
- Spot Bitcoin ETF activity remains subdued, signalling continued caution from larger investors.
- Heavy liquidations show traders are active, but conviction on the next move is still lacking.
Despite a sharp rally in global equities after US President Donald Trump walked back tariff threats against Europe, Bitcoin (BTC-USD) has remained subdued and continues to trade below the $90,000 mark.
By 10:00 GMT, Bitcoin was trading at $89,983.57. The broader cryptocurrency market showed more momentum, with total market capitalisation rising 2.7% to $3.18 trillion, according to CoinGecko data.
While prices have stabilised for now, underlying positioning remains uncertain. Spot Bitcoin ETF activity has stayed muted, suggesting institutional participants remain cautious, a factor that may ultimately determine whether the current rebound can extend or stalls below recent highs.
Bitcoin briefly pushed back towards $90,000 after Trump reversed plans to impose tariffs on eight European countries amid negotiations over Greenland. Speaking at the World Economic Forum in Davos, Trump also ruled out the use of force and said a framework for a future agreement on Greenland had been reached with Nato Secretary General Mark Rutte.
The comments triggered sharp, short-term volatility across crypto markets. Bitcoin dropped to an intraday low near $87,300 before rebounding, as traders reassessed US trade policy risks and broader macro conditions.
Coinglass data showed more than $625 million in leveraged crypto positions were liquidated over a 24-hour period, split broadly evenly between long and short positions across roughly 150,000 traders.
For now, direction remains unclear. With macro risks still elevated and fresh policy signals awaited, many investors appear content to stay on the sidelines until a clearer catalyst emerges.