European markets remained under pressure on Wednesday as equities extended losses, support from bond markets weakened, and gold surged to fresh record highs above $4,860 an ounce, underscoring persistent demand for safe-haven assets.

Crypto markets pared early gains as a tentative rebound lost momentum. Bitcoin slipped back below $89,000 as risk appetite faded across European stocks and currencies. The world’s largest cryptocurrency traded around $88,800 during the U.S. session after briefly moving toward $90,000 earlier in the day, suggesting the advance was more of a pause following heavy selling than a sustained recovery.

Major digital tokens followed a similar pattern, steadying initially before retreating as broader financial conditions softened.

Sentiment in traditional markets deteriorated through the European afternoon. The Stoxx 600 fell 0.5%, extending its losing streak to four sessions—the longest since November—with financial and insurance stocks leading declines. Bond markets, which had provided earlier support, also weakened as the drop in European yields stalled.

U.S. equity futures edged lower, while gold climbed another 2% to new record highs above $4,860 an ounce, reinforcing signs that investors remain focused on capital preservation rather than rotating back into risk.

Crypto markets had attempted to stabilize earlier after Japanese government bonds rebounded from a sharp selloff earlier in the week, following efforts by officials to calm markets. That development helped bitcoin recover part of Tuesday’s losses, but the rebound proved fragile as macro pressures persisted.

Uncertainty remains centered on President Donald Trump’s escalating standoff with Europe ahead of his address at the World Economic Forum in Davos. Trump has threatened tariffs on European nations that oppose his push for U.S. control or acquisition of Greenland, reviving concerns about trade tensions and policy volatility.

Those concerns have weighed on the U.S. dollar, now barely holding onto gains for the year, while currencies such as the British pound have come under pressure. Tuesday’s selloff wiped out more than $1 billion in leveraged crypto positions, and Wednesday’s price action suggests the market is still digesting that forced unwinding.