Bitcoin Price Swings Violently on Trump's Tariff Delay

Bitcoin’s price experienced a volatile session on Wednesday, swinging by thousands of dollars as traders digested fresh geopolitical headlines and comments from U.S. President Donald Trump.

The leading cryptocurrency began the day near $88,000 before surging past $90,000. The rally was brief, with the price retreating to the upper $87,000s after the market open. However, a second surge brought Bitcoin back toward the $90,000 level after Trump announced a delay in planned trade tariffs. At the time of writing, Bitcoin was trading around $90,000, reclaiming the key psychological level for the second time in the session.

Trump's Comments Trigger Broad Market Rally

The market's sharp movements followed remarks from President Trump at the World Economic Forum in Davos, Switzerland, and a subsequent post on his Truth Social platform.

Trump stated he would postpone tariffs scheduled for February 1, citing a "very productive meeting" with NATO Secretary General Mark Rutte. In his social media post, Trump detailed a preliminary framework for a wider agreement concerning Greenland and the Arctic, calling it "a great one for the United States of America, and all NATO nations." He confirmed that the planned tariffs would not proceed based on these discussions.

The news sparked a positive reaction across financial markets. U.S. equities saw a sharp uptick, with the S&P 500, Nasdaq, and Dow Jones Industrial Average each climbing by approximately 1.5%. This risk-on sentiment lifted other assets, including Bitcoin and major cryptocurrencies, pushing them back toward recent highs.

During his Davos address, Trump also reaffirmed his support for digital assets, stating his intention to sign comprehensive crypto market structure legislation "very soon."

"Now, Congress is working very hard on crypto market structure legislation — Bitcoin, all of them — which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom," Trump said.

Bitcoin Technicals and Lingering Macro Risks

Despite the tariff-related relief, macroeconomic concerns continue to loom. Analysts are watching renewed stress in Japan's bond market as a potential obstacle for global risk assets. The yield on Japan's 10-year government bond has risen to about 2.29%, a level not seen since 1999. QCP Capital noted that Japan's government debt is over 240% of its GDP, with debt servicing costs expected to account for a quarter of fiscal spending by 2026.

From a technical perspective, Bitcoin maintained a mildly bullish bias after holding its structure above $90,000 last week, rallying to $98,000 before closing around $93,600.

Key levels traders are monitoring this week include:

• Upside Targets: A reclaim of $94,000 could open the door to a retest of $98,000. A sustained break above this could target $103,500 and the major resistance zone between $106,000 and $109,000.

• Key Support: The immediate support level is at $91,400. A failure to hold this level could trigger a deeper correction toward $87,000 or even $84,000.

While momentum has shifted favorably, the $103,500–$109,000 area is expected to present strong resistance. A rejection from this zone could determine whether the rally continues or reverses toward sub-$80,000 levels.

Volatility Triggers Over $1 Billion in Liquidations

Wednesday's wild price action proved costly for leveraged traders. Data from CoinGlass shows that over $1 billion in crypto positions were liquidated in the past 24 hours as prices whipsawed.

Long positions took the heaviest losses, accounting for around $672 million of the total liquidations. Short positions accounted for approximately $335 million. Bitcoin traders faced the largest share of the damage, with $426 million in liquidations, followed by Ethereum with $366 million.

Currently, Bitcoin's price is $90,019 with a 24-hour trading volume of $67 billion. Its market capitalization stands at $1.798 trillion. The price remains below its 7-day high of $90,296 and above its 7-day low of $87,304.

Figure 1: Bitcoin's price shows high intraday volatility, hovering just above the $90,000 mark in a minute-by-minute view.