Bitcoin reclaimed the $90,000 zone after a sudden policy shift by U.S. President Donald Trump, who withdrew threatened tariffs following what he called a “very productive meeting” with NATO chief Mark Rutte. The move reversed a sell-off driven by large-holder distribution and broader risk‑off flows.
Bitcoin had dipped below the psychologically important $90,000 mark amid intensified selling from large holders and distribution by long-term investors, compounded by a wider liquidation wave in equities and long-dated Treasuries. The withdrawal of the tariff threat on the same day acted as an immediate catalyst: markets reacted quickly and Bitcoin recovered back above $90,000 by Jan. 22.
Market outlets documented the rebound with slightly different snapshots — an initial bounce to approximately $89,500 and then a spike to $90,232.89 — underscoring how rapidly sentiment shifted once geopolitical uncertainty eased.
The price briefly bounced to about $89,500 before surging past $90,000, with one market report recording a high of $90,232.89 and another noting a roughly 3% jump as tariff rhetoric subsided.
Policy move, geopolitics and market sensitivity
President Trump linked his decision to drop the tariff threat to progress on a “framework of a future deal” over Greenland and the Arctic region, a diplomatic turn that removed a major near‑term tail risk. That de‑escalation illustrated the crypto market’s acute sensitivity to geopolitical headlines: traders repriced risk exposure almost immediately after the announcement.
Short-term price moves were driven by headline risk rather than changes in on‑chain fundamentals. With rapid swings highlight operational and custody implications for desks and funds handling large orders.
Follow-up on the Greenland framework and any renewed tariff rhetoric will be a key determinant of near‑term stability.
Investors and product teams will now watch whether diplomatic follow‑through on the Greenland framework sustains the de‑escalation; renewed tariff language or fresh geopolitical noise would likely reintroduce outsized volatility and test whether Bitcoin can remain above $90,000.
