Crypto Price Volatility Peaks as Trump Signals Tariff Delay and Pro-Digital Asset Stance

The crypto price landscape experienced dramatic swings this week as geopolitical developments and policy announcements from Washington reshaped market sentiment. Bitcoin, the flagship cryptocurrency, oscillated around the $90,000 level amid shifting headlines and trader positioning, while the broader crypto price environment reflected heightened sensitivity to macroeconomic signals and regulatory commentary.

Policy Catalyst Drives Crypto Price Momentum

The primary catalyst for recent crypto price movement came from U.S. President Donald Trump’s statements at the World Economic Forum in Davos, Switzerland. During his remarks, Trump announced a postponement of previously scheduled trade tariffs set to take effect on February 1. The decision followed what Trump characterized as constructive negotiations with NATO Secretary General Mark Rutte regarding a potential framework involving Greenland and Arctic region developments.

On his Truth Social platform, Trump elaborated on his decision to delay tariffs, citing the productive nature of recent diplomatic discussions. The crypto price response proved immediate and substantial. Broader equity markets surged in tandem, with the S&P 500, Nasdaq, and Dow Jones Industrial Average each advancing approximately 1.5% during the session. Risk-sensitive assets, including cryptocurrencies, benefited from the shift toward a more optimistic near-term outlook.

Notably, Trump reinforced his administration’s openness toward digital assets during the Davos forum. He indicated that Congress was developing comprehensive market structure legislation for the cryptocurrency sector and expressed his intention to sign such legislation imminently. “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 stated, underscoring the administration’s crypto-friendly positioning and its potential to support the crypto price trajectory.

Technical Outlook and Market Liquidations

The volatile price action surrounding crypto price swings created challenging conditions for leveraged traders. According to data from CoinGlass, liquidations across crypto markets exceeded $1 billion over a 24-hour period, as rapid price reversals triggered stop-loss orders and margin calls. Long positions, which bet on continuing upward crypto price movement, bore the brunt of the liquidations at approximately $672 million, while short positions accounted for roughly $335 million in losses.

Bitcoin led the liquidation volume at around $426 million, with Ethereum following at approximately $366 million. These substantial trader losses highlighted the execution risk embedded in leveraged positions during periods of high crypto price volatility.

From a technical perspective, Bitcoin’s structure around the $90,000 level suggests continued upside potential for crypto price momentum. Analysts tracking the cryptocurrency note that Bitcoin rallied to $98,000 during recent trading and closed around $93,600, maintaining a cautiously bullish bias. Key resistance targets for sustained rallies include $94,000 and $98,000, with a decisive break potentially extending crypto price advances toward $103,500 and the $106,000–$109,000 zone. Support levels remain anchored at $91,400, with losses below this point potentially triggering a deeper pullback toward $87,000 or $84,000.

The $103,500–$109,000 resistance band is expected to exert strong selling pressure and will prove critical in determining whether the crypto price advance continues or reverses toward sub-$80,000 levels.

Macro Headwinds Linger Behind the Rally

Despite the near-term enthusiasm supporting the crypto price recovery, several macroeconomic concerns persist in the background. Japan’s bond market has emerged as a particular area of stress. The 10-year Japanese government bond yield has climbed to approximately 2.29%, a level not reached since 1999, reflecting capital flows and concerns about fiscal sustainability.

QCP Capital highlighted that Japan’s government debt exceeds 240% of gross domestic product, with debt servicing costs projected to consume roughly a quarter of fiscal spending by 2026. This dynamic raises questions about the sustainability of global monetary conditions and could prove challenging for risk-on crypto price sentiment if yields continue rising sharply or financial stress indicators deteriorate.

Current readings show Bitcoin trading near $88,880 with a 24-hour trading volume of approximately $969.77 million, while the cryptocurrency’s market capitalization stands at roughly $1.776 trillion. These levels remain elevated relative to historical averages, but the persistence of macro uncertainty suggests that crypto price volatility may persist in the near term as investors digest ongoing policy developments and economic data.