Bitcoin swung sharply during Asian hours, dipping below $88,000 before rebounding toward $90,000, CoinDesk market data showed, after U.S. President Donald Trump rolled back tariff threats linked to Greenland during his appearance at the World Economic Forum in Davos.

The rebound capped a volatile stretch for crypto markets, which had been under pressure earlier in the week amid a broader global risk-off move. Sentiment had soured following Trump’s hardline rhetoric toward Europe, a surge in global bond yields, and renewed volatility across equity markets.

By Thursday morning in Asia, those stresses began to ease, and digital assets moved higher in tandem.

Bitcoin briefly slid to around $87,300 late Wednesday as U.S. markets reacted to Trump’s comments and bond markets remained unsettled. The mood shifted quickly after Trump said he would hold off on imposing tariffs on European countries opposing U.S. control of Greenland, instead pointing to what he described as a “framework of a future deal.”

That shift helped calm broader markets. U.S. equity futures edged higher, Japanese government bonds extended gains for a second straight session, and demand for safe-haven assets cooled after gold hit new highs earlier in the week.

Bitcoin followed that stabilization, recovering toward $90,000 and reversing most of its overnight losses.

The episode highlights how closely crypto prices remain tethered to macro and political developments during periods of uncertainty. While bitcoin is often promoted as an alternative asset, it continues to trade like a high-risk investment when investors move to reduce exposure. Sudden changes in trade policy, bond yields, and global liquidity frequently spill into digital assets, particularly when positioning is crowded.

Price action across major tokens echoed the same pattern. Ether slipped below $3,000 during the selloff before climbing back above $3,020, paring losses. Solana rebounded to around $130 after earlier declines, while XRP traded back near $1.95. Cardano recovered toward $0.37 after touching weekly lows, and dogecoin regained ground near $0.127. Overall gains were limited, signaling consolidation rather than a renewed risk-on push.

What stood out was the speed of the reversal. Crypto prices dropped rapidly as Trump’s remarks reignited fears of trade conflict and policy uncertainty, then recovered just as quickly once the tone softened. Such whipsaw moves have become a familiar feature of a market highly sensitive to macro signals.

Bond markets were central to the shift. Earlier in the week, a sharp selloff in long-dated Japanese government bonds sent yields to record levels, tightening global financial conditions and weighing on speculative assets. By Thursday, yields retreated after officials called for calm, easing pressure across global rates and giving risk assets room to stabilize.

As trading focus returns to Asia and Europe, market participants will be watching whether bitcoin can hold above $90,000 or if the Davos-driven relief fades. Recent sessions have underscored that global politics and bond markets remain powerful forces shaping crypto volatility.