The world’s largest crypto was down 0.5% at $90,226.0 after declining below $90,000 earlier and coming close to its lowest levels for the year
Bitcoin briefly dropped below the key $90,000 level on Wednesday as fears of geopolitical risks from the U.S.-Greenland spat and mounting fiscal concerns over Japan battered appetite for speculative assets.
The world’s largest crypto was down 0.5% at $90,226.0 by 15:10 GMT, after declining below $90,000 earlier and coming close to its lowest levels for the year.
Bitcoin marked a sluggish start to 2026, failing to hold any major gains as global risk appetite faltered. A delay in a key U.S. crypto regulation bill also sapped markets of any momentum.
Bitcoin and broader underperformance in crypto was fuelled chiefly by heightened concerns over U.S. President Donald Trump’s demands for Greenland.
Trump threatened to tariff eight European countries until a deal was reached, and was also seen declining to rule out potential military action for the Danish colony.
Trump is set to attend the World Economic Forum in Davos, Switzerland, on Wednesday, where he said he will speak to “various parties” on Greenland.
Mounting concerns over weak fiscal health in the so-called developed world also weighed on risk appetite. Global bond yields soared this week, with the spike originating in Japan as investors fretted over the country’s debt burden.
Concerns over Japan’s fiscal health were furthered by Prime Minister Sanae Takaichi declaring a snap election in early-February. Investors have questioned just how Tokyo will fund Takaichi’s plans for outsized stimulus measures and more tax breaks.
Geopolitical and fiscal fears left markets largely risk averse, drawing bids away from speculative assets such as crypto and into safe havens, especially gold. The yellow metal soared to a series of record highs this week.
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