Bitcoin experienced a significant rebound, climbing back to $90,000 as the cryptocurrency market reacted positively to President Trump”s decision to walk back proposed tariffs related to Greenland. This move alleviated concerns regarding potential global trade disruptions that had previously spooked investors.
The recovery was swift and notable, with Bitcoin bouncing back after dipping below $88,000 earlier in the day. Other major cryptocurrencies, such as Ethereum and Solana, also saw upward movements, aligning with a broader resurgence in risk assets across global markets.
In the wake of Trump”s announcement, the crypto market saw more than $1 billion in liquidations, primarily affecting short positions that were caught off guard by the rapid price recovery. This volatility highlights the ongoing nature of market reactions to macroeconomic developments.
As crypto surged, traditional safe-haven assets like gold and silver experienced declines from their recent all-time highs, reversing the gains they had accrued during the earlier tariff-driven sell-off. This dynamic underscores the current perception of cryptocurrencies as risk-on assets rather than safe havens.
Looking ahead, the overall macroeconomic environment appears encouraging for 2026, suggesting that fears of another tariff-induced market shock may be fading. However, it is essential to recognize that the long-term risks remain, as Bitcoin has yet to establish itself as a reliable alternative to gold in times of uncertainty.
There are several theories for Bitcoin”s ongoing struggle to align with the “digital gold” narrative. Factors such as the looming threat of quantum computing, increasing integration of cryptocurrency into U.S. economic policies, and a prevailing imbalance of sellers over buyers could be contributing to this phenomenon.
Despite these challenges, the short-term outlook for crypto has become more optimistic following the recent price movements. As the market adjusts, investors will be watching closely to see how these dynamics play out in the coming weeks.
