TLDR
- Bitcoin dropped to $87,300 before bouncing back toward $90,000 after Trump withdrew tariff threats against European countries during his Davos speech.
- Stock futures extended gains Thursday with Dow futures up 0.1%, S&P 500 futures up 0.2%, and Nasdaq 100 futures up 0.4%.
- Major cryptocurrencies including Ethereum, Solana, XRP, Cardano and dogecoin experienced similar sell-offs and recoveries.
- U.S. stock indexes rallied over 1% Wednesday after Trump confirmed he would not impose tariffs scheduled for February 1st.
- The market swings demonstrated how closely crypto and stock prices track political developments and policy announcements.
Bitcoin experienced sharp volatility in Asian trading Thursday, falling below $88,000 before recovering toward $90,000. The turnaround followed President Donald Trump’s decision to pull back on tariff threats during his World Economic Forum appearance in Davos.
Bitcoin (BTC) PriceThe crypto market had faced pressure throughout the week. Investors sold risk assets as Trump’s aggressive trade rhetoric sparked concerns about global economic stability.
Trump announced Wednesday he would not impose tariffs on European nations opposing U.S. control of Greenland. He cited progress toward a “framework of a future deal” with NATO Secretary General Mark Rutte. This policy shift triggered immediate market reactions across multiple asset classes.
Cryptocurrency Markets Mirror Broader Risk Assets
Bitcoin hit a low of $87,300 late Wednesday as U.S. markets processed Trump’s initial statements. Bond yields rose and equity markets declined as uncertainty spread through financial markets.
The reversal came quickly. U.S. equity futures turned positive after Trump’s announcement. Japanese government bonds stabilized for a second consecutive session. Bitcoin climbed in tandem with these movements.
Ethereum fell below $3,000 during the selloff before climbing back above $3,020. Solana recovered to approximately $130 after earlier losses. XRP traded near $1.95 while Cardano moved toward $0.37.
Dogecoin regained ground near $0.127. These moderate gains pointed to market stabilization rather than renewed bullish momentum.
Stock Futures Continue Wednesday’s Strong Rally
Stock futures maintained their upward trajectory Thursday morning. Dow Jones Industrial Average futures increased 0.1%. S&P 500 futures climbed 0.2% while Nasdaq 100 futures advanced 0.4%.
E-Mini S&P 500 Mar 26 (ES=F)Wednesday’s trading session delivered strong returns across major indexes. The Dow, S&P 500 and Nasdaq Composite all surged over 1%. The S&P 500 and Nasdaq posted their best single-day performances of 2026.
Trump confirmed in a Truth Social post he would not impose tariffs set for February 1st. He had previously threatened 10% minimum tariffs on European countries that refused to support U.S. acquisition of Greenland.
Bond Markets Drive Global Financial Conditions
Bond market movements played a central role in the price action. A selloff in long-dated Japanese government bonds earlier this week pushed yields to record highs. This tightened financial conditions globally and forced investors to reduce speculative positions.
Japanese yields retreated Thursday after government officials urged calm. This easing of rate pressures gave risk assets breathing room to recover.
The rapid price reversals showed how sensitive markets are to policy announcements. Crypto and stocks fell quickly when Trump’s comments raised trade war fears. They recovered at similar speed when his tone shifted.
Traders are monitoring whether bitcoin can maintain levels above $90,000. Despite Wednesday’s rally, major stock indexes remain down for the week. Major companies including Intel, Procter & Gamble and GE Aerospace report earnings Thursday. Weekly jobless claims data is due before market open.
The post Daily Market Update: Crypto and Stocks Whipsaw as Trump Backs Off Tariff Threats appeared first on Blockonomi.
Source: https://blockonomi.com/daily-market-update-crypto-and-stocks-whipsaw-as-trump-backs-off-tariff-threats/
